DuPont de Nemours Inc. (DD) shares soared over 5% in pre-market trading on Tuesday after the specialty chemicals maker reported better-than-expected third quarter earnings, driven by robust demand for electronics materials and continued recovery in its water and medical packaging businesses.
For the quarter ended September 30, 2024, DuPont posted adjusted earnings per share of $1.18, surpassing analysts' average estimate of $1.03. Net sales rose 4% year-over-year to $3.19 billion, roughly in line with expectations.
The company's Electronics & Industrial segment, its largest unit, saw a 13% jump in sales as organic sales grew 10% on the back of strong demand for semiconductor and consumer electronics materials. The segment's operating profit margins expanded by 210 basis points to 30.1%, driven by higher volumes, increased production rates, and cost savings from restructuring efforts.
In the Water & Protection segment, sales declined 2% due to lower prices, but operating profit margins improved by 70 basis points to 26.3% thanks to productivity gains and restructuring benefits.
Buoyed by the strong quarterly performance, DuPont raised its full-year 2024 adjusted earnings guidance to around $3.90 per share, up from its previous forecast range of $3.70 to $3.80. However, the company trimmed its sales outlook to around $12.37 billion from $12.40 billion to $12.50 billion previously.
Comments