Dow, the chemical company based in Midland, Mich., is set to release its earnings report for the second quarter before the market opens on Tuesday. Here are the key details you need to know.
Sales Expectations
According to FactSet, analysts forecast that Dow will report sales of $11.27 billion for the quarter. This would reflect a decline compared to last year’s sales of $15.66 billion during the same period.
Adjusted Earnings Projection
The expected earnings per share, excluding one-time items, is estimated to be 72 cents.
Key Factors to Watch
Demand Levels
Investors will closely monitor any comments regarding the level of demand as it serves as a crucial driver for potential volume growth. In the first quarter, Dow highlighted that demand for its segments faced pressure, especially in Europe, the Middle East, Africa, and India, resulting in an 8% decline in volumes.
Margin and Volume Performance
Market observers will pay close attention to the company’s margin and volume performance during the period, particularly given the impact of lower prices and higher energy costs. In the first quarter, Dow experienced a decrease in margins from 15.9% to 6% compared to the same period in the previous year.
Progress of Savings Program
Additionally, investors will seek updates on Dow’s progress in achieving its goal of delivering $1 billion in cost savings by 2023. The company aims to maximize its cash-flow generation through this program.
