Industrials

Dow Chemical Offers Earnings Beat Despite Weather Issues

Dow Chemical Co. (NYSE: DOW) reported first-quarter 2014 results before markets opened Wednesday. The diversified chemicals company posted diluted earnings per share (EPS) of $0.79 on revenues of $14.46 billion. In the same period a year ago, the company reported adjusted EPS of $0.69 on revenues of $14.38 billion. First-quarter results also compare to the Thomson Reuters consensus estimates for EPS of $0.71 and $14.72 billion in revenues.

Its Performance Plastics unit saw sales gains of 6% due to higher prices, while higher volumes in Coatings and Infrastructure Solutions led to a 5% increase in sales. The company also cited strong growth in China.

The company’s CEO said:

We achieved margin expansion in all of our key business operating segments — despite a series of weather- and transport-related issues in North America. … Our financial priorities are firmly institutionalized, and we continued to increase cash flow and further improved return on capital. Additionally, we increased our dividend and completed $1.25 billion in share repurchases in the first quarter alone.

ALSO READ: The Most Innovative Companies in the World

Competitor E.I. du Pont de Nemours and Company (NYSE: DD), commonly known as DuPont, last week reported first-quarter results that fell short of consensus estimates, in part due to inclement weather.

Dow Chemical did not offer specific guidance, but consensus forecasts so far call for EPS of $0.83 and revenue of $15.08 billion in the current quarter, as well as $2.92 per share and $58.99 billion for the full year.

Dow Chemical shares were inactive in premarket trading, after ending Tuesday at $48.94 in a 52-week range of $31.00 to $50.96. Thomson Reuters had a consensus analyst price target of around $50.50 before the report.

ALSO READ: Companies Profiting the Most From War

Want to Retire Early? Start Here (Sponsor)

Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?

Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.

Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.