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bottom (New York Stock Exchange: DOW) is scheduled to announce fourth-quarter earnings results on Thursday, January 26, before the market opens.
The consensus EPS estimate is $0.57 (-73.5% Y/Y) and the consensus revenue estimate is $12.05 billion (-16.3% Y/Y).
About him last 2 years, D.O.W. has exceeded EPS estimates 88% of the time and has exceeded revenue estimates 100% of the time.
Over the last 3 months, the EPS estimates have seen 3 upward revisions and 7 downward revisions. Revenue estimates have had 4 upward revisions and 7 downward revisions.
The chemical giant in late October posted a third-quarter EPS loss but beat revenue. Its third-quarter operating income was the lowest in the past six quarters.
Dow has a quant rating of HOLD, with a rating score of 3.18.
Wall Street analysts and the authors of Seeking Alpha also rate DOW stocks a HOLD. DOW has an industry rank of 4 out of 24 in the Basic Chemicals sector, according to SA’s Quant Ranking.
Recent analysis: SA contributor Geoff Considine wrote: “The market-implied outlook for Dow is slightly bullish through mid-2023 and into January 2024, with volatility expected to be around 30%. As we get closer to results In Q4, it’s hard to see much of a short-term positive. I maintain a neutral rating on Dow, though I still view a covered call strategy as attractive.
BofA Securities, in its January report, said: “We are still below the sell-side consensus for DOW in 2023 and we are concerned about the Q4 earnings report due to a number of previous negative announcements from the pairs. Still, we suspect this cut should be among the past as polyethylene prices have likely halted their decline and ethane markets have weakened considerably.”
BofA said it is not at a point where it expects a material rise in Dow’s share price due to excesses in its polyethylene, acrylic, MDI and silicone franchises, but it does see the performance profile of stocks becomes “increasingly asymmetrical” since the downside is probably limited.
DOW Stocks fell about 7% in 2022, while the benchmark S&P 500 (SP500) index fell nearly 20% on the year.
