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.
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