Corteva Stock Trades Higher Following Earnings Call

Corteva, Inc. CTVA shares are trading higher Thursday after the company reported its fourth-quarter financial results and announced a $1 billion repurchase plan.

The Details:

Corteva reported quarterly adjusted earnings of 15 cents per share, beat the analyst estimates of six cents and representing a 6.25% decrease over earnings of 16 cents per share year-over-year.

The company reported quarterly sales of $3.71 billion, representing a 3.08% decrease from sales of $3.83 billion year-over-year.

Additionally, Corteva announced plans to repurchase approximately $1 billion shares in 2024.

“Corteva’s 2023 results reflect the execution of our value creation strategy, including its focus on productivity, differentiated product mix, and cost discipline. This, alongside a stand-out performance from our seed business, allowed us to deliver growth in earnings, cash and margin despite an ongoing imbalance in the global crop protection industry,” said Chuck Magro, Corteva CEO.

Mizuho analyst Chris Parkinson maintained Corteva with a Buy and lowered the price target from $59 to $56 on Wednesday.

According to data from Benzinga Pro, Corteva shares are trading above the stock’s 50-day moving average of $46.20 and below its 52-week high of $65.21.

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Is CTVA A Good Stock To Buy:

An investor or trader's decision to buy or sell a stock is unique to their time horizon and risk tolerance. Many typical investors evaluate earnings growth and valuation on a particular stock before making a decision.

For example, for Corteva, you'll notice that earnings in its last quarter grew 150% source. As an investor, you'll want to decide whether that's better or worse than what you'd like to see among stocks in your portfolio.

On the valuation side, Corteva's price to earnings ratio – a measure of how much an investor pays for the company's earnings – is compressed 48.85% in the current quarter when compared with last year. That places it above similar businesses CF Industries Holdings, Sociedad Quimica Y Minera, Mosaic in its sector. You'll need to decide whether that makes it more or less attractive based on how you think the company will perform over time.

There are many different valuation metrics that may help you make a decision. Find more on Corteva's quote page, or if you'd like a deeper dive in an advanced program, try Benzinga PRO for free.

NXT Price Action: According to Benzinga Pro, Corteva shares are up 17.5% at $53.44 at the time of publication.

Image: Steve Buissinne from Pixabay