Shares of
Dow Chemical Co DOW jumped over 2 percent in pre-market trading after the company reported stronger-than-expected earnings for the first quarter.
The Midland, Michigan-based company posted quarterly net income of $1.5 billion, or $1.18 per share, compared to $1.0 billion, or $0.79 per share, in the year-ago quarter. Its operating earnings per share came in at $0.84 per share.
Its sales shrank to $12.4 billion from $14.5 billion. However, analysts were expecting earnings of $0.76 per share on revenue of $13.04 billion.
Agricultural Sciences sales slipped 12 percent year-over-year to $1.9 billion in the quarter, while Consumer Solutions sales came in at $1.1 billion. Infrastructure Solutions posted sales of $1.8 billion, while Performance Materials & Chemicals posted sales of $3.2 billion. Sales for Performance Plastics slipped 23 percent to $4.3 billion.
EBITDA was $3.1 billion for the quarter, while operating EBITDA came in at $2.4 billion.
Operating cash flow was $1.2 billion for the quarter.
The average estimate among 16 Estimize users was for earnings of $0.79 per share and revenue of $12.97 billion.
Andrew N. Liveris, Dow's chairman and chief executive officer said, "Looking ahead, we expect geopolitical and economic uncertainty throughout 2015, although the oil market is projected to be more favorable behind growing global demand in the coming quarters. In this environment, we will continue to execute against our growth commitments, demonstrated by our investment in bringing 5,000 new products to market in the last twelve months – with a similar amount planned for the next twelve months. In addition, our large Saudi Arabia and U.S. Gulf Coast projects will begin starting up later this year. Collectively these investments set Dow apart by further strengthening our portfolio through economic cycles and fortifying our long-term growth trajectory."
Dow Chemical shares gained 2.26 percent to $51.15 in pre-market trading.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
