DuPont (DD) Tops Q4 EPS by 9c, Revenues Beat; Offers 1Q & FY21 EPS/Revenue Guidance Above Consensus

February 9, 2021 6:10 AM EST

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DuPont (NYSE: DD) reported Q4 EPS of $0.95, $0.09 better than the analyst estimate of $0.86. Revenue for the quarter came in at $5.25 billion versus the consensus estimate of $5.12 billion.

"The leading positions we hold in automotive, protective garments, residential construction, semiconductor, and smartphones markets enabled us to capitalize on positive momentum and deliver strong fourth quarter results with sequential volume improvement in all segments," said Ed Breen, DuPont Executive Chairman and Chief Executive Officer. "Operating leverage and year-over-year operating EBITDA margin expansion in each of our core segments in the fourth quarter is a proof point in our teams' commitment to execution. Throughout the year we have focused on positioning ourselves for growth through strategic investments, streamlining our overhead structure, improving working capital, and strengthening our balance sheet. This disciplined operating model served us well in 2020 and will be our roadmap for success in 2021."

"In addition to delivering strong financial results during the quarter, our teams remained laser focused on closing out a number of our strategic priorities," Breen continued. "Earlier this month, we completed the separation of our Nutrition & Biosciences business and have also signed agreements to divest our Clean Technologies and Solamet businesses(2). These actions unlock significant value for our stakeholders, generate substantial cash flow for the company, and focus our portfolio to three core business segments moving forward. We also made a joint announcement with Corteva and Chemours regarding an agreement to settle legal disputes originating from the 2015 spin-off of Chemours from E.I. du Pont and the pending personal injury claims in the Ohio multi-district litigation. This agreement provides a measure of security and certainty for us and our shareholders regarding any potential exposures related to these legacy matters."

GUIDANCE:

DuPont sees Q1 2021 EPS of $0.75-$0.77, versus the consensus of $0.64. DuPont sees Q1 2021 revenue of $3.75-3.85 billion, versus the consensus of $3.69 billion.

DuPont sees FY2021 EPS of $3.30-$3.45, versus the consensus of $3.07. DuPont sees FY2021 revenue of $15.4-15.6 billion, versus the consensus of $15.11 billion.

Beginning in the first quarter 2021, DuPont will reflect Nutrition & Biosciences as discontinued operations for the current and historical periods.

"For 2021, we expect net sales between $15.4 and $15.6 billion, an increase of 8 percent at the mid-point versus 2020 net sales of $14.3 billion and operating EBITDA between $3.83 and $3.93 billion, an increase of 13 percent at the mid-point versus 2020 operating EBITDA of $3.4 billion, reflecting anticipated solid top line growth and robust operating EBITDA margin expansion," said Lori Koch, Chief Financial Officer of DuPont. "Our outlook for full year adjusted EPS is in the range of $3.30 to $3.45 per share, an increase of 68 percent at the mid-point versus 2020 adjusted EPS of $2.01 per share, reflecting the improvement in operating EBITDA, lower interest expense and the benefit of a lower share count."

"We also expect a strong first quarter of 2021 with net sales between $3.75 and $3.85 billion, an increase of 4 percent at the mid-point versus 1Q 2020 net sales of $3.7 billion, operating EBITDA between $950 and $970 million, an increase of 6 percent at the mid-point versus 1Q 2020 operating EBITDA of $907 million, and adjusted EPS in the range of $0.75 to $0.77 per share, an increase of 58 percent at the mid-point versus 1Q 2020 adjusted EPS of $0.48 per share," Koch stated.

For earnings history and earnings-related data on DuPont (DD) click here.



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