Dow Inc. Faces Earnings Downgrade Amid Market Challenges

Dow Inc. is set to announce its Q4 earnings soon, with an EPS expected at $0.32, down 25.6% year-over-year. Analysts show cautious optimism as DOW has experienced significant share price declines, which may lead to fluctuating investor sentiment.

Date: 09-01-2025

AI Rating: 5

Earnings Per Share (EPS)
Analysts project Dow's EPS for Q4 to be $0.32, reflecting a drop of 25.6% from $0.43 in the same quarter last year. For fiscal 2024, the estimated EPS is $2.04, representing an 8.9% decline from the previous year. However, a significant rebound is foreseen for fiscal 2025, predicting a growth of 41.7% with an EPS of $2.89.

Net Income and Profit Margins
The company's Q3 performance reported earnings of $0.47 per share with net sales of $10.9 billion. Despite this, lower performance in the Industrial Intermediates & Infrastructure segment saw a drop in sales to $2.96 billion, missing projections, highlighting potential pressure on net income and profit margins.

Free Cash Flow (FCF)
There has been a significant decline in cash flow from operating activities, which has dropped to $800 million. This decrease raises concerns about the company’s cash-generating abilities and may affect its capacity for reinvestment and dividends.

Market Performance
Over the past 52 weeks, DOW has seen its shares drop by 29.5%, underperforming both the S&P 500 Index and the Materials Select Sector SPDR Fund. This decline highlights challenges in market perception and performance compared to peers.

Despite a 'Moderate Buy' consensus rating from analysts, the overall market challenges and forecasts for declining EPS could significantly pressure Dow's stock. Investors may want to weigh these factors cautiously leading up to the earnings announcement.

Stocks: DOW