UPDATE: Dow Chemical Shares Surge On Upbeat Q3 Earnings
Shares of Dow Chemical Company (NYSE: DOW) surged more than 4% in pre-market trading after the company reported better-than-expected third-quarter earnings.
The Midland, Michigan-based company posted a quarterly profit of $852 million, or $0.71 per share, versus a year-ago profit of $594 million, or $0.49 per share. Its adjusted EPS surged to $0.72 from $0.50.
Its revenue climbed 5% to $14.4 billion. However, analysts were expecting earnings of $0.67 per share on revenue of $14.30 billion.
Electronic and Functional Materials segment's sales rose 3% to $1.2 billion, while Coatings and Infrastructure Solutions segment sales came in flat at $1.8 billion. Agricultural Sciences segment's sales came in flat at $1.4 billion, while Performance Materials segment sales gained 8% to $3.6 billion. Performance Plastics segment sales climbed 8% to $3.9 billion, while Feedstocks and Energy segment sales rose 2% to $2.4 billion.
Sales in developed geographies climbed 4%, while sales in emerging geographies rose 6%.
EBITDA rose 24% to $2.3 billion, while adjusted EBITDA margin widened more than 240 basis points to 15.9%
Cash flow from operations was $1.8 billion in the quarter.
Andrew N. Liveris, Dow's chairman and chief executive officer, stated, “Dow delivered a strong quarter of top- and bottom-line growth. Our low-cost positions and geographic diversification enabled growth and improving operating rates in the quarter. Record EBITDA in Performance Plastics and Electronic and Functional Materials, coupled with significant improvement in Performance Materials again this quarter, demonstrates the value of our strategy to be low cost and fully integrated in key products while adding value through technology in key markets.”
Dow Chemical shares climbed 4.15% to $50.21 in pre-market trading.
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.