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This Dow Isn't Average: Fool by Numbers

By Motley Fool Contributors – Updated Nov 15, 2016 at 4:28PM

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Fast facts the Fool way.

On Oct. 26, Dow Chemical (NYSE:DOW) released its third-quarter earnings for the period ended Sept. 30, 2006.

  • Revenues beat the estimates by 3%, while GAAP EPS was hampered by a $0.45-per-share restructuring charge.
  • Strong performance across all operating segments led to a revenue growth of 9.8%.
  • Restructuring charges related to the shutdown of several assets led to an operating margin decline.

(Figures in millions, except per-share data)

Income Statement Highlights

Avg. Est.

Q3 2006

Q3 2005

Change

Sales

$11,994

$12,359

$11,261

9.8%

Net Profit

--

$512

$801

(36.1%)

EPS

$0.92

$0.53

$0.82

(35.4%)

Diluted Shares

--

970

978

(0.9%)



Get back to basics with a look at the income statement.

Margin Checkup

Q3 2006

Q3 2005

Change*

Gross Margin

14.23%

14.66%

(0.43)

Operating Margin

6.29%

11.31%

(5.02)

Net Margin

4.14%

7.11%

(2.97)

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q3 2006

Q3 2005

Change

Cash + ST Invest.

$3,169

$3,210

(1.3%)

Accounts Rec.

$8,324

$7,797

6.8%

Inventory

$6,118

$5,450

12.3%



Liabilities

Q3 2006

Q3 2005

Change

Accounts Payable

$5,352

$5,009

6.8%

Long-Term Debt

$9,199

$9,969

(7.7%)



Learn the ways of the balance sheet.

Cash Flow Highlights

YTD 2006

YTD 2005

Change

Cash From Ops.

N/A

N/A

N/A

Capital Expenditures

$1,118

$1,050

6.5%

Free Cash Flow

N/A

N/A

N/A



Find out why Fools always follow the money.

Related Companies:

  • Sherwin-Williams (NYSE:SHW)
  • Ashland (NYSE:ASH)
  • Eastman Chemical (NYSE:EMN)
  • Air Products & Chemicals (NYSE:APD)

Related Foolishness:

Think Dow's on its way to the top? Got a certain feeling about Eastman? Share your views on these and thousands more stocks by joining more than 11,500 fellow investors in CAPS, the Motley Fool's new community-intelligence stock-rating service. Dow is anIncome Investorpick.

Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so checkFool.com for more of our in-depth discussion of what the numbers mean. This data has been provided by Netscribes. To provide feedback on this article, please click on the "feedback" button below.

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Stocks Mentioned

DuPont de Nemours, Inc. Stock Quote
DuPont de Nemours, Inc.
DOW
The Sherwin-Williams Company Stock Quote
The Sherwin-Williams Company
SHW
$211.22 (1.52%) $3.17
Eastman Chemical Company Stock Quote
Eastman Chemical Company
EMN
$72.69 (-2.74%) $-2.05
Air Products and Chemicals, Inc. Stock Quote
Air Products and Chemicals, Inc.
APD
$237.07 (-0.61%) $-1.45
Ashland Global Holdings Inc. Stock Quote
Ashland Global Holdings Inc.
ASH
$97.12 (0.09%) $0.09

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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