Shares of Dow Chemical Company (NYSE: DOW) fell sharply in pre-market trading on Tuesday after the chemical giant reported weaker-than-expected second-quarter results, missing analysts' estimates for both earnings and revenue.
The company's adjusted earnings per share (EPS) for the quarter came in at $0.68, falling short of the consensus estimate of $0.72. Revenue also disappointed, declining 4% year-over-year to $10.92 billion, compared to analysts' expectations of $11 billion.
Dow attributed the lackluster performance to lower prices and demand across key markets, particularly in Asia and Europe. The company's net sales were impacted by a 4% decline in local prices, while volumes increased only 1% year-over-year.
The results reflect the challenging macroeconomic environment faced by the chemical industry, with slowing global growth and trade tensions weighing on demand. Dow's CEO Jim Fitterling acknowledged the slower-than-anticipated macroeconomic recovery, stating that the company remains focused on working capital, reducing costs, and matching operating rates to current demand.
While Dow expects sales to improve sequentially in the third quarter, reaching $11.1 billion, this figure is still below analysts' estimates of $11.35 billion. The company's cautious outlook, coupled with the disappointing second-quarter performance, fueled investor concerns, leading to a sharp sell-off in Dow's shares.
Comments