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DuPont (DD) Reports Strong 'Beat and Raise' Q2, Shares Jump

July 27, 2010 9:15 AM EDT
DD Hot Sheet
Revenue Growth %: +12.0%

Financial Fact:
Interest expense: 114M

Today's EPS Names:
TARO, BRLI, TLB, More
DuPont Co. (NYSE: DD) said Tuesday before the market open that it saw its income nearly triple in the second quarter, as revenue jumped across most of its businesses even as it raised prices.

The company also raised its full-year earnings forecast ahead of the Street's view, pushing shares higher in premarket trade.

The Wilmington, Delaware-based chemical maker reported second-quarter earnings of $1.16 billion or $1.26 per share, up from $417 million or 46 cents per share in the same quarter last year.

Excluding one-time items including a gain related to a tax settlement, the maker of Teflon and Kevlar said that it earned $1.17 per share, 24 cents better than the analyst estimate of 93 cents per share.

Revenue for DuPont rose 26 percent in the three month period ended in June to $8.62 billion from $6.86 billion a year ago, beating the market consensus of $8.23 billion.

"Our outstanding focus and disciplined execution delivered excellent results," said DuPont Chair and CEO Ellen Kullman. "DuPont's global team worked closely with customers, applying the breadth and depth of our science capabilities to meet market needs. We grew sales across every segment. Several businesses, including electronics and titanium dioxide, delivered results that far exceeded pre-recession levels. We continue to hit our productivity and cost-control targets, and remain highly disciplined in creating operating leverage to further grow the company."

Looking forward, the company raised its earnings forecast for the full year to a range of $2.90 to $3.05 per share from a prior view of $2.50 to $2.70 per share, ahead of the Street’s outlook of $2.64 per share.

Analysts at Goldman Sachs noted that strong results in Ag & Nutrition drove much of the upside and were the result of continued price and share gains in North American seeds. The firm also notes, surprisingly, the company is also seeing better trends in its latercycle Safety & Protection business. The firm expect DuPont to continue to grow earnings and expand margins in coming quarters.

Shares of DuPont are up 4.59 percent in premarket movement to $40.78 on Tuesday.

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