The 10-second takeaway
For the quarter ended June 30 (Q2), Dow Chemical missed estimates on revenue and whiffed on earnings per share.
Compared to the prior-year quarter, revenue contracted and GAAP earnings per share shrank significantly.
Gross margins increased, operating margins shrank, and net margins dropped.
Dow Chemical booked revenue of $14.51 billion. The 11 analysts polled by S&P Capital IQ anticipated revenue of $15.70 billion on the same basis. GAAP reported sales were 9.6% lower than the prior-year quarter's $16.05 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.55. The 16 earnings estimates compiled by S&P Capital IQ averaged $0.65 per share. GAAP EPS of $0.55 for Q2 were 35% lower than the prior-year quarter's $0.84 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 15.9%, 30 basis points better than the prior-year quarter. Operating margin was 7.7%, 30 basis points worse than the prior-year quarter. Net margin was 5.1%, 150 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $15.27 billion. On the bottom line, the average EPS estimate is $0.64.
Next year's average estimate for revenue is $60.33 billion. The average EPS estimate is $2.46.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 2,100 members out of 2,233 rating the stock outperform, and 133 members rating it underperform. Among 586 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 566 give Dow Chemical a green thumbs-up, and 20 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 $36.43.
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