The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Dow Chemical beat slightly on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue contracted slightly and GAAP loss per share grew.
Gross margins expanded, operating margins increased, net margins dropped.
Dow Chemical reported revenue of $13.92 billion. The 12 analysts polled by S&P Capital IQ looked for revenue of $13.71 billion on the same basis. GAAP reported sales were 1.3% lower than the prior-year quarter's $14.10 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 $0.33. The 16 earnings estimates compiled by S&P Capital IQ averaged $0.36 per share. GAAP EPS were -$0.61 for Q4 compared to -$0.02 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 14.2%, 160 basis points better than the prior-year quarter. Operating margin was 4.7%, 110 basis points better than the prior-year quarter. Net margin was -4.5%, 500 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $14.79 billion. On the bottom line, the average EPS estimate is $0.65.
Next year's average estimate for revenue is $58.99 billion. The average EPS estimate is $2.42.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 2,100 members out of 2,230 rating the stock outperform, and 130 members rating it underperform. Among 628 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 613 give Dow Chemical a green thumbs-up, and 15 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 $32.63.
Looking for alternatives to Dow Chemical? It takes more than great companies to build a fortune for the future. Learn the basic financial habits of millionaires next door and get focused stock ideas in our free report, "3 Stocks That Will Help You Retire Rich." Click here for instant access to this free report.
- Add Dow Chemical to My Watchlist.
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. The Motley Fool has no position in any of the stocks mentioned. 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.