Shares of DuPont (NYSE:DD), a company that provides specialty materials, chemicals, and agricultural products, are trending higher today after the company announced a dividend boost and a $1 billion share repurchase program alongside its fourth-quarter numbers. Last month, DuPont shares had come under pressure after its profit warning rattled investors. In Q4, revenue declined by 7% year-over-year to $2.9 billion, lagging estimates by $20 million. EPS of $0.87, on the other hand, fared better than expectations by $0.02.
During the quarter, organic sales declined by 10%. DuPont experienced inventory reductions from its clients and weak demand in China in 2023. The company is now focusing on driving operational efficiencies and cost savings.
Further, DuPont has completed share repurchases worth $5 billion under its November 2022 share buyback program. The company is now undertaking a new share buyback program worth $1 billion. Looking to drive shareholder value, it is also increasing its quarterly dividend by 6% to $0.38 per share. The DD dividend is payable on March 15 to investors of record on February 29.
Amid challenging market conditions, DuPont expects sequential revenue and earnings decline in Q1. However, it expects an increase in sales and earnings in the second half of the year. For Fiscal Year 2024, net sales are seen hovering between $11.9 billion and $12.3 billion, with an Adjusted EPS in the range of $3.25 to $3.65.
Is DD a Good Stock?
Today’s price gains come after a nearly 20% drop in the company’s share price over the past month. Overall, the Street has a Moderate Buy consensus rating on DuPont, and the average DD price target of $76.22 points to a substantial 24.5% potential upside in the stock.
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