DuPont’s shares jumped 7% Tuesday on better-than-expected earnings and revenue, driven by strong growth in its artificial intelligence semiconductor business. The company reported a 6.7% year-over-year increase in net sales to $3.09 billion, beating estimates of $3.07 billion. Adjusted earnings per share (EPS) rose 29.9%, the best quarterly growth rate since 2021.
The stock’s positive reaction is a welcome relief after a bruising few months, with shares falling 12% between November 7 and Monday’s close. However, DuPont’s strong quarterly results demonstrate why investors have stayed invested through the doldrums.
The company’s electronics spin-off, planned for later this year, appears to be gaining traction, with AI-related sales up roughly 30% in 2024, totaling more than $300 million. CEO Lori Koch expects the spin-off to be completed by November 1, sooner than initially projected.
DuPont’s fundamentals are improving, driven by strong growth in its semiconductor business and excess inventory issues being addressed. The company’s water business is also showing signs of improvement, with low-double-digits growth in volumes.
While DuPont’s full-year guidance is mixed, the company expects sales to increase mid-single digits on an organic basis, with adjusted EPS topping estimates. Overall, DuPont’s strong quarterly results and improving fundamentals make it a compelling investment opportunity.
Source: https://www.cnbc.com/2025/02/11/dupont-jumps-on-a-strong-q4-and-a-big-reason-to-stay-invested-stays-on-track.html