DuPont Shares Drop Despite Earnings Beat After Lowering Its Guidance as China Demand Slows

DuPont's (DD) third-quarter earnings beat analyst estimates, but the chemical company lowered its revenue guidance on slowing demand from China. The company's shares fell more than 6% in early trading Wednesday.

DuPont reported adjusted earnings per share (EPS) of 92 cents, on net sales of $3.06 billion. That is higher than the 81 cents forecast by analysts on revenue estimates of $3.15 billion, and up roughly 12% from the same period last year.

"We delivered solid third quarter earnings despite ongoing volume headwinds from channel inventory destocking and continued softness in China," said DuPont Executive Chair and CEO Ed Breen.

DuPont Lowers Guidance, But Not For The First Time

Despite better-than-expected results, DuPont lowered its year-end guidance for revenue to about $12.17 billion and EPS to $3.45.

And it's not the first time DuPont has done so this year. The company trimmed its full-year 2023 revenue estimates in May based on slow recovery in the electronics and industrial (E&I) end markets. However, a turnaround in these industries over the summer prompted DuPont to boost forecasts when it reported its second-quarter earnings in August.

But the slowdown in China led DuPont to change its outlook again.

"[V]ersus our prior guidance, we are seeing additional channel inventory destocking and slower industrial water demand in China. We are revising our 2023 full year net sales and operating EBITDA guidance to reflect near-term volume headwinds and are also planning additional restructuring actions with realization of savings expected to begin later in the first quarter of 2024," DuPont CFO Lori Koch said.