Shares of DuPont de Nemours Inc (DD) plummeted 7.85% in intraday trading on Tuesday, extending a sharp premarket decline, as the industrial materials maker's narrowed annual sales forecast and weakness in its Middle East water business overshadowed an otherwise strong quarterly earnings beat and raised profit guidance.
The company reported second-quarter adjusted earnings of $1.88 per share on net sales of $1.82 billion, both topping analyst estimates. However, DuPont narrowed its full-year 2026 revenue guidance to a range of $7.16 billion to $7.19 billion, down from a prior forecast of $7.16 billion to $7.22 billion, citing ongoing challenges in its water business. The stock had already surged nearly 60% over the past 12 months, and analysts noted that the guidance raise was roughly equivalent to the size of the second-quarter beat, leaving investors underwhelmed after lofty expectations.
J.P. Morgan analysts flagged that uncertainty in the water business was likely to persist in the second half of the year, even as the company projects mid-single-digit organic sales growth. The sell-off suggests that much of the good news had already been priced in, triggering a sell-the-news reaction despite the company's beat-and-raise quarter.
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