The 10-second takeaway
For the quarter ended March 31 (Q1), Dow Chemical missed slightly on revenues and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue was unchanged and GAAP earnings per share shrank significantly.
Margins dropped across the board.
Dow Chemical reported revenue of $14.72 billion. The 11 analysts polled by S&P Capital IQ expected revenue of $15.01 billion on the same basis. GAAP reported sales were 0.1% lower than the prior-year quarter's $14.73 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.61. The 16 earnings estimates compiled by S&P Capital IQ averaged $0.60 per share on the same basis. GAAP EPS of $0.35 for Q1 were 34% lower than the prior-year quarter's $0.53 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 16.5%, 130 basis points worse than the prior-year quarter. Operating margin was 8.2%, 130 basis points worse than the prior-year quarter. Net margin was 3.4%, 140 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $16.39 billion. On the bottom line, the average EPS estimate is $0.78.
Next year's average estimate for revenue is $61.78 billion. The average EPS estimate is $2.68.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 2,096 members out of 2,227 rating the stock outperform, and 131 members rating it underperform. Among 624 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 608 give Dow Chemical a green thumbs-up, and 16 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Dow Chemical is hold, with an average price target of $36.67.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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