Dow (NYSE:DOW) is scheduled to announce Q4 earnings results on Thursday, January 26th, before market open.
The consensus EPS Estimate is $0.57 (-73.5% Y/Y) and the consensus Revenue Estimate is $12.05B (-16.3% Y/Y).
Over the last 2 years, DOW has beaten EPS estimates 88% of the time and has beaten revenue estimates 100% of the time.
Over the last 3 months, EPS estimates have seen 3 upward revisions and 7 downward. Revenue estimates have seen 4 upward revisions and 7 downward.
The chemical giant in late October posted a third quarter EPS miss but a revenue beat. Its Q3 operating income was lowest in the last six quarters.
Dow has a Quant rating of HOLD, with a 3.18 rating score.
Wall Street analysts and Seeking Alpha authors also rate the DOW stock HOLD. DOW has an industry ranking of 4 out of 24 in the commodity chemicals sector, as per SA’s Quant ranking.
Recent analysis: SA contributor Geoff Considine wrote “The market-implied outlook for Dow has a slight bullish tilt to the middle of 2023 and into January 2024, with expected volatility of about 30%. As we approach Q4 results, it is hard to see a lot of near-term positives. I am maintaining a neutral rating on Dow although I continue to 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 are concerned about the 4Q earnings report given a host of negative preannouncements from peers. Still, we suspect this cut should be among the last as polyethylene prices have likely stopped their descent and ethane markets have weakened considerably”.
BofA said it is not at a point where it expects material upside to Dow’s share price due to overhangs to their polyethylene, acrylic, MDI, and silicone franchises, but do see the share return profile become “increasingly asymmetric” as downside is likely limited.
DOW stock fell about 7% in 2022, while the benchmark S&P 500 (SP500) slid nearly 20% for the year.