Dow beats Q3 earnings estimates, revenue declines

Investing.com -- Dow Inc. (NYSE: DOW) reported better-than-expected third-quarter earnings on Wednesday, though revenue fell short of analyst projections amid continued industry-wide pressure.

The chemical giant posted an adjusted loss of $0.19 per share, beating the analyst estimate of a $0.31 loss, while revenue came in at $9.97 billion, below the consensus estimate of $10.22 billion.

Revenue declined 8% YoY across all operating segments, with local prices down 8% compared to the year-ago period. Volume decreased 1% YoY, though it increased 1% sequentially following the startup of Dow’s new assets in the U.S. Gulf Coast. The company’s shares rose 1.8% premarket following the announcement.

"In the third quarter, we delivered sequential earnings and cash flow improvement despite continued pressure across our industry," said Jim Fitterling, Dow chair and CEO. "We captured resilient demand from our new polyethylene and alkoxylation assets in the U.S. Gulf Coast, delivering sequential volume and earnings growth in key end markets at higher margins."

Operating EBIT was $180 million, down $461 million YoY, primarily due to declines in price and equity earnings. However, this represented a $201 million sequential improvement, driven by cost reduction progress and lower planned maintenance activity. Cash provided by operating activities reached $1.1 billion, up $330 million YoY.

The Packaging & Specialty Plastics segment saw the largest decline, with net sales down 11% YoY to $4.9 billion, while Industrial Intermediates & Infrastructure sales fell 4% to $2.8 billion. Performance Materials & Coatings sales decreased 6% to $2.1 billion.

Dow remains on track to deliver more than $6.5 billion in near-term cash support, with over half already achieved. This includes a $1 billion reduction in capital expenditure this year and accelerated delivery of $1 billion in targeted cost reductions by the end of 2026.

You May Also Be Interested In

• Walmart (WMT) PT Lowered to $130 at UBS on Investment Narrative's Competing Dynamics
• Why this strategist thinks longer-term outlook for stocks is "unfavorable"
• LivePerson extends special meeting deadline for SoundHound AI merger vote