NEW YORK (TheStreet) -- Shares of DuPont (DD) - Get DuPont de Nemours, Inc. Report were gaining 1.1% to $72.35 on Monday ahead of the chemical company's first quarter earnings report tomorrow before the opening bell.
Analysts expect DuPont to report earnings of $1.32 a share and revenue of $9.42 billion for the first quarter of 2015.
Dupont reported earnings of 71 cents a share for the fourth quarter of 2014, in line with analysts' estimates for the quarter. The company reported revenue of $7.38 billion for the fourth quarter, below the $7.8 billion analysts surveyed by Thomson Reuters expected.
In the first quarter of 2014 the chemical company reported earnings of $1.58 a share, meeting analysts' estimates for the quarter. DuPont reported revenue of $10.13 billion for the first quarter of 2014, below analysts' estimates of $10.45 billion.
DuPont will announce its first quarter 2015 results before the opening bell on Tuesday, and the earnings conference call is scheduled for 9 a.m. EDT.
TheStreet Ratings team rates DU PONT (E I) DE NEMOURS as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate DU PONT (E I) DE NEMOURS (DD) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, notable return on equity, impressive record of earnings per share growth, increase in net income and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The debt-to-equity ratio is somewhat low, currently at 0.80, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.03, which illustrates the ability to avoid short-term cash problems.
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. When compared to other companies in the Chemicals industry and the overall market, DU PONT (E I) DE NEMOURS's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.
- DU PONT (E I) DE NEMOURS reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, DU PONT (E I) DE NEMOURS increased its bottom line by earning $3.89 versus $3.04 in the prior year. This year, the market expects an improvement in earnings ($4.05 versus $3.89).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Chemicals industry. The net income increased by 269.2% when compared to the same quarter one year prior, rising from $185.00 million to $683.00 million.
- 36.17% is the gross profit margin for DU PONT (E I) DE NEMOURS which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 9.18% trails the industry average.
- You can view the full analysis from the report here: DD Ratings Report