Examining the Future: Dow's Earnings Outlook

Dow DOW will release its quarterly earnings report on Thursday, 2025-04-24. Here's a brief overview for investors ahead of the announcement.

Analysts anticipate Dow to report an earnings per share (EPS) of $0.04.

Anticipation surrounds Dow's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.

New investors should understand that while earnings performance is important, market reactions are often driven by guidance.

Overview of Past Earnings

Last quarter the company missed EPS by $0.24, which was followed by a 1.3% increase in the share price the next day.

Here's a look at Dow's past performance and the resulting price change:

Quarter Q4 2024 Q3 2024 Q2 2024 Q1 2024
EPS Estimate 0.24 0.46 0.71 0.45
EPS Actual 0 0.47 0.68 0.56
Price Change % 1.0% -3.0% 0.0% 2.0%

Performance of Dow Shares

Shares of Dow were trading at $29.0 as of April 22. Over the last 52-week period, shares are down 46.92%. Given that these returns are generally negative, long-term shareholders are likely bearish going into this earnings release.

Analysts' Perspectives on Dow

For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Dow.

Analysts have given Dow a total of 14 ratings, with the consensus rating being Neutral. The average one-year price target is $37.86, indicating a potential 30.55% upside.

Analyzing Analyst Ratings Among Peers

In this analysis, we delve into the analyst ratings and average 1-year price targets of Westlake, Cabot and Hawkins, three key industry players, offering insights into their relative performance expectations and market positioning.

  • Analysts currently favor an Buy trajectory for Westlake, with an average 1-year price target of $128.24, suggesting a potential 342.21% upside.
  • Analysts currently favor an Neutral trajectory for Cabot, with an average 1-year price target of $84.0, suggesting a potential 189.66% upside.
  • Analysts currently favor an Buy trajectory for Hawkins, with an average 1-year price target of $141.0, suggesting a potential 386.21% upside.

Comprehensive Peer Analysis Summary

The peer analysis summary offers a detailed examination of key metrics for Westlake, Cabot and Hawkins, providing valuable insights into their respective standings within the industry and their market positions and comparative performance.

Company Consensus Revenue Growth Gross Profit Return on Equity
Dow Neutral -2.03% $935M -0.31%
Westlake Buy 0.60% $328M 0.07%
Cabot Neutral -0.31% $235M 6.59%
Hawkins Buy 8.49% $48.42M 3.34%

Key Takeaway:

Dow ranks at the bottom for Revenue Growth with a decrease of 2.03%. It also ranks lowest for Gross Profit at $935M. In terms of Return on Equity, Dow is at the bottom with a negative 0.31%.

Get to Know Dow Better

Dow Inc is a diversified chemicals producer, formed in 2019 as a result of the DowDuPont merger and subsequent separations. The firm is a key producer of several chemicals, including polyethylene, ethylene oxide, and silicone rubber. Its products have numerous applications in both consumer and industrial end markets. The Company conducts its operations through six businesses, which are organized into segments, such as Packaging & Specialty Plastics, Industrial Intermediates &and Infrastructure and Performance Materials and Coatings. Packaging and Specialty.

Breaking Down Dow's Financial Performance

Market Capitalization: Positioned above industry average, the company's market capitalization underscores its superiority in size, indicative of a strong market presence.

Negative Revenue Trend: Examining Dow's financials over 3 months reveals challenges. As of 31 December, 2024, the company experienced a decline of approximately -2.03% in revenue growth, reflecting a decrease in top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Materials sector.

Net Margin: Dow's net margin is impressive, surpassing industry averages. With a net margin of -0.54%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Dow's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of -0.31%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): Dow's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of -0.1%, the company showcases efficient use of assets and strong financial health.

Debt Management: Dow's debt-to-equity ratio surpasses industry norms, standing at 1.02. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

To track all earnings releases for Dow visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

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