Shares of DuPont (DD -0.45%) are down 13% this week as of Thursday's close, according to data provided by S&P Global Market Intelligence, after the global chemical company announced mixed preliminary fourth-quarter results and disappointing forward guidance.

DuPont is balancing cash flows with lower volumes

DuPont isn't officially slated to release Q4 and full-year 2023 results until Feb. 6, 2024. But in a press release Wednesday, the company told investors it expects Q4 revenue to arrive at roughly $2.9 billion, which should translate to adjusted (non-GAAP) earnings per share ranging from $0.85 to $0.87. Analysts, on average, were expecting earnings near the low end of that range but on higher revenue of $3 billion.

DuPont Executive Chairman and CEO Ed Breen noted the company continues to focus on generating strong cash flows as it navigates a "lower-volume environment."

"As we finished 2023, [we] saw additional channel inventory destocking within our industrial businesses as well as continued weak demand in China," Breen added. "We are seeing similar trends continue and expect sequential sales and earnings to decline in the first quarter of 2024. ..."

What's next for DuPont investors?

DuPont has also moved quickly to implement restructuring initiatives announced in November and continues to expect a broad recovery in the market for electronics materials this year.

In the meantime, DuPont expects Q1 2024 net sales of $2.8 billion, with adjusted earnings per share of $0.63 to $0.65. Both were below Wall Street's consensus estimates for Q1 revenue of $3 billion and earnings of $0.88 per share.

I expect DuPont management will provide additional color on its expectations for the full year 2024 along with its official earnings call in February. But I certainly can't blame some investors in the leading chemicals stock for taking a step back this week in response to its underwhelming preliminary announcement.