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The Gory Details on DuPont's Double Miss

By Seth Jayson - Updated Apr 7, 2017 at 12:12PM

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Just the facts, Fool.

DuPont (NYSE: DD) reported earnings on Oct. 23. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Sep. 30 (Q3), DuPont missed estimates on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue shrank significantly and GAAP earnings per share dropped significantly.

Margins dropped across the board.

Revenue details
DuPont tallied revenue of $7.39 billion. The 12 analysts polled by S&P Capital IQ foresaw net sales of $8.17 billion on the same basis. GAAP reported sales were 21% lower than the prior-year quarter's $9.34 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.44. The 17 earnings estimates compiled by S&P Capital IQ forecast $0.49 per share. GAAP EPS of $0.01 for Q3 were 98% lower than the prior-year quarter's $0.48 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 22.0%, 330 basis points worse than the prior-year quarter. Operating margin was 4.6%, 390 basis points worse than the prior-year quarter. Net margin was 0.1%, 470 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $7.80 billion. On the bottom line, the average EPS estimate is $0.04.

Next year's average estimate for revenue is $37.60 billion. The average EPS estimate is $3.45.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,690 members out of 1,799 rating the stock outperform, and 109 members rating it underperform. Among 473 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 460 give DuPont a green thumbs-up, and 13 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on DuPont is outperform, with an average price target of $56.13.

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Stocks Mentioned

E. I. du Pont de Nemours and Company Stock Quote
E. I. du Pont de Nemours and Company
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