These Analysts Lower Their Forecasts On Dow After Downbeat Earnings

Dow Inc. DOW reported worse-than-expected fourth-quarter financial results on Thursday.

Sales declined 2% year over year to $10.4 billion, missing the consensus of $10.51 billion, on weakness in Packaging & Specialty Plastics segments.

Sequentially, net sales fell 4%, led by seasonal declines in Performance Materials & Coatings. Local prices fell 3% year-over-year and sequentially due to declines in all operating segments.

Operating EBIT declined to $454 million from $559 million a year ago, while the margin contracted by 90 bps to 4.4% for the quarter. Adjusted EPS was $0.00, missing the consensus of $0.24.

Jim Fitterling, chair and chief executive officer, said, “Despite persistently weak macroeconomic conditions, Team Dow delivered our fifth consecutive quarter of year-over-year volume growth, leveraging our cost-advantaged footprint to capture resilient demand for high-value applications.”

To navigate the economic downturn, the company expects to reduce 2025 capital expenditures by $300 million-$500 million.

Dow shares fell 6.1% to close at $38.55 on Thursday.

These analysts made changes to their price targets on Dow following earnings announcement.

• Barclays analyst Michael Leithead maintained Dow with an Equal-Weight rating and lowered the price target from $48 to $44.
• Morgan Stanley analyst Vincent Andrews maintained Dow with an Equal-Weight rating and cut the price target from $46 to $43.

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