This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

DuPont, Freeport McMoRan Bode Well for Earnings

Stocks in this article: FCX DD BHP

NEW YORK ( TheStreet) -- After a positive Martin Luther King Jr. holiday including an upbeat inauguration for President Obama's second term, the "bull market" appears ready to charge ahead. Earnings season has been mainly upbeat and mostly positive.

Two very important companies stepped into the earnings spotlight before the market opened on Tuesday. Neither one sorely disappointed or offered any gloomy guidance going forward. If you've been waiting for a correction to buy, the response so far to Tuesday's earnings parade means you may have to wait longer.

E. I. du Pont de Nemours (DD - Get Report) is the most important of the two. Few seemed surprised when it reported that weakness in its performance chemicals, electronics and communications businesses, combined with costs related to growth initiatives were blamed for a big drop in fourth-quarter income. I guess the drop wasn't bad enough to spark a selloff?

DD reported net income of $111 million, or 12 cents per share, for the last three months of 2012, down 70% from $373 million, or 40 cents per share, for the fourth quarter of 2011. Revenue came in virtually unchanged from the year-ago period at $7.3 billion, with currency issues and other losers being offset by a 3% gain in global sales.

Sales in Latin America grew 10%, with an 8% volume gain and a 7% increase in local prices. A 6% increase in volume in the Asia-Pacific region was impacted by negative currency and pricing effects. Amazingly, DuPont was still able to beat the consensus estimate of Wall Street analysts of 7 cents per share and total quarterly revenue of $7.2 billion.

DD's fourth-quarter positive outcome was mainly due to its agricultural unit, which saw sales increase 18% to $1.5 billion on 11% higher volumes and 7% higher prices. Full-year sales for the agricultural unit were up 14% to $10.4 billion on 8% higher volume and 6% higher prices. The CEO had upbeat comments and a list of reasons for the lackluster quarter.

"DuPont stands stronger today than it did a year ago. Our segments delivered innovation, productivity and integration cost synergies. This, coupled with a record year in new product introductions, has strengthened our market position," said DuPont Chair and CEO Ellen Kullman.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,164.95 -251.90 -1.45%
S&P 500 1,994.99 -26.26 -1.30%
NASDAQ 4,635.24 -48.1670 -1.03%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs