DuPont (NYSE:DD) shares fell sharply following its 1Q earnings release despite the American chemical giant beating estimates on profit and revenue.
The firm posted a decrease in net sales of 8% to $3 billion for the first quarter of 2023 as a lower volume environment hit its electronics and construction-related end markets, according to the company.
That figure was still ahead of analyst estimates of around $2.9 billion for the quarter ended March 31, 2023, but shares of DuPont (NYSE:DD) tumbled over 8% by midday in New York.
"Due to the delay in electronics recovery, we are adjusting the high-end of our existing guidance ranges for full-year net sales, operating EBITDA and adjusted EPS," CEO Ed Koch told investors.
Koch said the company is expecting similar results in its second quarter as overall market conditions are anticipated to be "generally the same."
The group now expects its full-year 2023 revenue to be between $12.3 to $12.5 billion, with adjusted earnings per share (EPS) of $3.55 to $3.70.
On a brighter note, the company said it did see “robust demand” within its auto adhesives portfolio.
DuPont (NYSE:DD)'s adjusted earnings per share (EPS) was $0.84, a 2% increase from $0.82 for the same period in 2022 and ahead of Zacks estimates of $0.81.
The company's operating cash flow for the quarter was $343 million, with adjusted free cash flow of $102 million after capital expenditures of $241 million.
Separately on Tuesday, DuPont announced a definitive agreement to acquire Spectrum Plastics Group, a leading manufacturer of critical components and devices primarily for medical end-markets, for $1.75 billion.
DuPont said it expects the Spectrum Plastics Group acquisition to add substantial shareholder value over time through growth and clear synergies with its existing medical-related products.
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