Dow's Q3 Earnings and Revenues Top Estimates on Higher Volumes
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Dow Inc. DOW logged profits (on a reported basis) of $214 million or 30 cents per share in third-quarter 2024, down from a profit of $302 million or 42 cents per share a year ago.
Barring one-time items, adjusted earnings were 47 cents per share for the reported quarter, down from 48 cents a year ago. The figure beat the Zacks Consensus Estimate of 46 cents.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Dow recorded net sales of $10,879 million for the quarter, up 1% year over year. It also surpassed the Zacks Consensus Estimate of $10,725.4 million. The top line was supported by increased sales in the United States and Canada.
Dow Inc. Price, Consensus and EPS Surprise
Dow Inc. price-consensus-eps-surprise-chart | Dow Inc. Quote
Volumes were up 1% year over year in the reported quarter driven by gains in the Performance Materials & Coatings unit. This marked the fourth straight quarter of year-over-year volume growth. Local prices were flat year over year in the quarter with gains in Packaging & Specialty Plastics segment offset by decreases in Performance Materials & Coatings.
While DOW faced headwinds from an unplanned cracker outage in Texas and higher planned maintenance activity, it gained from higher margins in Packaging & Specialty Plastics in the quarter.
Dow’s Segment Highlights
Packaging & Specialty Plastics: The division’s sales rose 1% year over year to $5,516 million in the reported quarter. The figure was above our estimate of $5,249.5 million. Volumes were flat year over year as increased demand for functional polymers was masked by lower polyethylene volumes. Local prices were up 1% due to increased polyethylene prices in all regions barring Latin America.
Industrial Intermediates & Infrastructure: Sales for the unit declined 2% year over year to $2,962 million. The figure was below our estimate of $3,039.2 million. Local prices were flat in the quarter. Volumes fell 2% on declines in polyurethanes and construction chemicals.
Performance Materials & Coatings: Revenues from the division rose 4% year over year to $2,214 million. The figure was below our estimate of $2,242.9 million. Volumes rose 5% while local prices went down 1%. Volumes increased on gains in all businesses and geographic regions.
DOW’s Financials
Dow had cash and cash equivalents of $2,883 million at the end of the quarter, down around 14% from the prior quarter. Long-term debt was $16,164 million, up around 1% sequentially.
Cash provided by operating activities from continuing operations was $800 million in the reported quarter, down from $1,658 million in the prior-year quarter.
Dow also returned $584 million to shareholders in the quarter through dividends and share buybacks.