DuPont Announces $2 Billion Share Buyback: Why Did The Stock Tumble 5% Today?

• DuPont announced that its board has declared a quarterly dividend for New DuPont of $0.20 per share, in line with New DuPont's targeted payout ratio of 35% to 45%.
• The company’s third-quarter net sales rose 7% to $3.1 billion from last year, while organic sales increased 6% compared to a year ago.
• The company reported 10% organic sales growth in ElectronicsCo and 4% organic sales growth in IndustrialsCo for the quarter.

DuPont (DD) on Thursday said that its board has approved a new share repurchase authorization of up to $2 billion of the company’s common stock.

"We also announced a $2 billion share repurchase authorization including an accelerated share repurchase of $500 million, and our initial dividend for new DuPont," CEO Lori Koch said.

The company noted that its board declared a quarterly dividend for New DuPont of $0.20 per share, in line with New DuPont's targeted payout ratio of 35% to 45%. 

New DuPont would exclude the company’s Electronics business, which was spun off under the name Qnity Electronics, and its Aramids business, which was sold to TJC LP in return for cash proceeds of approximately $1.2 billion.

Retail sentiment on DuPont improved to ‘extremely bullish’ from ‘bullish’ territory compared to a day ago, with message volumes at ‘extremely high’ levels, according to data from Stocktwits. Shares of the company fell nearly 5% in premarket trading on Thursday. 

DuPont’s Q3 Results

The company’s third-quarter net sales rose 7% to $3.1 billion from last year, while organic sales increased 6% compared to a year ago. DuPont’s quarterly adjusted earnings per share of $1.09 were in line with a year ago.

DuPont said its quarterly results include the segment results of IndustrialsCo, excluding the Aramids business, which is reported as discontinued operations, as well as ElectronicsCo. 

The company reported 10% organic sales growth in ElectronicsCo and 4% organic sales growth in IndustrialsCo for the quarter.

Forecast For 2025

DuPont said it now expects full-year 2025 net sales to be nearly $6.84 billion, compared with its prior forecast of approximately $6.87 billion.

The company’s adjusted earnings per share forecast for the year is about $1.66. It expects fourth-quarter net sales to be about $1.69 billion and adjusted earnings per share to be $0.43.

Shares of DuPont have gained over 24% this year and have jumped 12% in the last 12 months.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Also See: Celsius Stock Ticks Higher Premarket Ahead Of Q3 Report: Retail Sentiment Turns Bullish

Share

·

Add us on