Dow Shares Gain After Q1 Beat, Clocks 28% Sales Growth

Dow Inc DOW reported first-quarter sales growth of 28% year-over-year to $15.3 billion, beating the consensus of $14.48 billion.
Adjusted EPS was $2.34, beating the consensus of $2.05.
Operating EBIT increased 55.7% Y/Y to $2.42 billion and margin expanded by 280 bps to 15.9%.
Packaging & Specialty Plastics sales increased 25.4% Y/Y to $7.63 billion, and the operating EBIT margin of 16.2% was down by 400 bps.
Industrial Intermediates & Infrastructure sales increased 25.4% Y/Y to $4.5 billion, and the operating EBIT margin expanded by 560 bps to 14.6%.
Performance Materials & Coatings sales increased by 43.6% Y/Y to $3.05 billion, and the operating EBIT margin expanded by 1,660 bps to 19.5%.
DOW's cash provided by operating activities was $1.6 billion, up $1.8 billion year-over-year due to increased earnings and an elective pension contribution in the year-ago period.
The company returned $1.1 billion to shareholders in the quarter, comprised of $513 million in dividends and $600 million in share repurchases.
Recently, Dow's board approved a new share buyback program of up to $3 billion and declared a dividend of $0.70 per share, payable June 10, 2022, to shareholders of record on May 31, 2022.
"Looking ahead, we see strong demand across our end-markets," commented chairman and CEO Jim Fitterling. "Dow is well-positioned to achieve mid-cycle earnings above pre-pandemic levels as we capture increasing demand for low-carbon, sustainable and circular innovations."
Price Action: DOW shares are trading higher by 5.49% at $71.25 on the last check Thursday.

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