DuPont Raises Profit Forecast on Strong Electronics Demand
Delware, USA - DuPont de Nemours (NYSE: DD) has revised its 2025 profit forecast upward, citing robust demand for electronics and outperforming quarterly earnings estimates. The positive results have driven premarket trading shares up by 5%.
Growing Semiconductor Market Spurs Growth
DuPont's advanced chip manufacturing and packaging capabilities have benefited from the burgeoning semiconductor market used in AI technology. The company's electronics and industrial unit, responsible for the majority of its revenue, experienced a 10.6% increase in net sales in Q4.
Other Business Segments Show Improvement
The water and protection segment, previously impacted by weak Chinese demand, has rebounded with a 6.4% sales boost, primarily driven by increased volume in medical packaging products.
Spin-off Plans Revised
Earlier in the year, DuPont announced plans to create three publicly traded companies but has since reversed its decision to divest its water and protection unit. The company will now spin off its electronics business alone, with the transaction expected to be finalized by November 1st.
Financial Performance and Outlook
DuPont's full-year adjusted earnings projection is $4.30-$4.40 per share, exceeding the previous forecast of $3.70-$3.80 for 2024. Analysts anticipate adjusted earnings of $4.33 per share in 2025. The company anticipates sales between $12.8 billion and $12.9 billion, also surpassing the previous year's range.
In Q4, DuPont reported adjusted earnings of $1.13 per share, surpassing analyst expectations of $0.98 per share.