The 10-second takeaway
For the quarter ended March 31 (Q1), Dow Chemical missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted slightly. Non-GAAP earnings per share grew. GAAP earnings per share increased significantly.
Margins grew across the board.
Dow Chemical notched revenue of $14.38 billion. The 13 analysts polled by S&P Capital IQ expected sales of $14.88 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $0.69. The 17 earnings estimates compiled by S&P Capital IQ predicted $0.62 per share. Non-GAAP EPS of $0.69 for Q1 were 13% higher than the prior-year quarter's $0.61 per share. GAAP EPS of $0.46 for Q1 were 31% higher than the prior-year quarter's $0.35 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 18.6%, 190 basis points better than the prior-year quarter. Operating margin was 9.4%, 110 basis points better than the prior-year quarter. Net margin was 4.4%, 100 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $14.77 billion. On the bottom line, the average EPS estimate is $0.66.
Next year's average estimate for revenue is $58.04 billion. The average EPS estimate is $2.40.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 2,093 members out of 2,224 rating the stock outperform, and 131 members rating it underperform. Among 615 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 599 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 $35.60.
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