The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Dow Chemical missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank and GAAP earnings per share shrank significantly.
Gross margins expanded, operating margins expanded, net margins shrank.
Dow Chemical tallied revenue of $13.64 billion. The 13 analysts polled by S&P Capital IQ looked for revenue of $14.22 billion on the same basis. GAAP reported sales were 9.7% lower than the prior-year quarter's $15.11 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 $0.42. The 17 earnings estimates compiled by S&P Capital IQ predicted $0.38 per share. GAAP EPS of $0.42 for Q3 were 39% lower than the prior-year quarter's $0.69 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 16.6%, 200 basis points better than the prior-year quarter. Operating margin was 7.2%, 60 basis points better than the prior-year quarter. Net margin was 4.3%, 170 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $14.13 billion. On the bottom line, the average EPS estimate is $0.37.
Next year's average estimate for revenue is $57.27 billion. The average EPS estimate is $1.91.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 2,101 members out of 2,230 rating the stock outperform, and 129 members rating it underperform. Among 594 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 578 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 $33.87.
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