Dow Earnings Preview: What to Expect

With a market cap of $38.4 billion, Midland, Michigan-based Dow Inc. (DOW) operates within the materials science sector, providing innovative and sustainable solutions across a variety of industries. With a broad portfolio of advanced products, it serves global markets, including packaging, infrastructure, mobility, and consumer care. DOW is expected to announce its Q3 earnings before the market opens on Thursday, Oct. 24.

Ahead of the event, analysts expect the materials science company to report a profit of $0.53 per share, up 10.4% from $0.48 per share reported in the year-ago quarter. The company has surpassed Wall Street's bottom-line estimates in three of the past four quarters while missing on one other occasion. In the most recent quarter, DOW missed the consensus estimates by 5.6%.

In fiscal 2024, analysts expect Dow to report an EPS of $2.43, up 8.5% from $2.24 in fiscal 2023. Looking forward to fiscal 2025, its EPS is expected to grow 51.9% year-over-year to $3.69.

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DOW stock is down marginally on a YTD basis, underperforming the S&P 500 Index’s ($SPX) 19.4% gains and the Materials Select Sector SPDR Fund’s (XLB) 10.9% returns over the same time frame.

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Shares of Dow dropped marginally on Jul. 25 due to the company's lower-than-expected Q2 adjusted earnings of $0.68 per share and revenue of $10.9 billion. Lower demand and prices in key markets like Asia and Europe, combined with weak manufacturing activity in these regions, contributed to a 4% drop in local prices for its products. These factors contributed to the earnings and sales miss, dampening investor confidence.

The consensus opinion on Dow stock is cautiously optimistic, with an overall “Moderate Buy” rating. Among 18 analysts covering the stock, four recommend a “Strong Buy” rating and 14 suggest a “Hold” rating. The average target price for DOW is $56.82, indicating a potential upside of just 4% from current price levels. 

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On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.