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Dow Updates Q3 Outlook Due to Texas Incident & Headwinds in Europe

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Dow Inc. (DOW - Free Report) updated its third-quarter 2024 earnings guidance, forecasting revenues of approximately $10.6 billion and operating EBITDA of about $1.3 billion.

Dow stated that its revised outlook is mainly prompted by a major unexpected incident in late July at one of its ethylene crackers in Texas. The company is also dealing with higher input costs and margin pressures in Europe. However, improved pricing in North America and lower feedstock costs in its Packaging & Specialty Plastics segment partly offset these challenges.

Looking ahead to the fourth quarter, Dow indicated that demand is expected to align with typical seasonal trends. It expects to benefit from lower turnaround costs, increased operating rates as the Texas cracker ramps up, and fewer weather-related disruptions in the U.S. Gulf Coast. Dow emphasized its commitment to maintaining strong operational and financial discipline while continuing to focus on long-term growth initiatives.

Dow’s shares have lost 7% in the past year against the industry's 9.7% decline in the same period.

Zacks Investment Research
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DOW reported adjusted earnings of 68 cents per share in the second quarter, falling short of the Zacks Consensus Estimate of 72 cents. This marked a decline from 75 cents earned in the same quarter last year. The company's revenues in the quarter were $10,915 million, below the Zacks Consensus Estimate of $10,960.3 million and down 4% from the prior-year quarter’s tally.

Dow Inc. Price and Consensus

 

Dow Inc. Price and Consensus

Dow Inc. price-consensus-chart | Dow Inc. Quote

 

DOW’s Zacks Rank & Key Picks

Dow currently carries a Zacks Rank #5 (Strong Sell).

Some better-ranked stocks in the Basic Materials space are Hawkins, Inc.(HWKN - Free Report) , Carpenter Technology Corporation (CRS - Free Report) and Eldorado Gold Corporation (EGO - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Hawkins’ current fiscal-year earnings is pegged at $4.14, indicating a rise of 15.3% from the year-ago level. The Zacks Consensus Estimate for HWKN’s current fiscal-year earnings has increased 12.8% in the past 60 days.The stock has rallied around 103.1% in the past year.

The Zacks Consensus Estimate for Carpenter Technology’scurrent-year earnings is pegged at $6.06 per share, indicating a rise of 27.9% from the year-ago level. CRS’ earnings beat the consensus estimate in each of the trailing four quarters, the average earnings surprise being 15.9%. The stock has surged nearly 104% in the past year.

The Zacks Consensus Estimate for Eldorado Gold’s current year earnings is pegged at $1.35 per share, indicating a year-over-year rise of 136.8%. EGO beat the consensus estimate in each of the trailing four quarters, with the average surprise being 430.3%. The company's shares have surged nearly 84.7% in the past year.

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