Chemicals Company Dow Cuts Outlook Amid Production Challenges
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 12 2024
0mins
Source: Benzinga
Revised Financial Outlook: Dow Inc. has lowered its third-quarter revenue guidance to approximately $10.6 billion, down from $11.1 billion, due to an unplanned event at a Texas ethylene cracker and increased input costs, while expecting operating EBITDA of around $1.3 billion.
Future Expectations: CEO Jim Fitterling anticipates improved demand in the fourth quarter driven by lower turnaround costs and higher operating rates, despite recent challenges reflected in a 4% year-over-year sales decline reported in July.
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Analyst Views on DOW
Wall Street analysts forecast DOW stock price to fall
15 Analyst Rating
1 Buy
13 Hold
1 Sell
Hold
Current: 32.650
Low
20.00
Averages
25.71
High
32.00
Current: 32.650
Low
20.00
Averages
25.71
High
32.00
About DOW
Dow Inc. serves as a holding company for The Dow Chemical Company and its subsidiaries. The Company conducts its operations through six global businesses, which are organized into segments, such as Packaging & Specialty Plastics, Industrial Intermediates & Infrastructure and Performance Materials & Coatings. Packaging & Specialty Plastics segment consists of two integrated global businesses: Hydrocarbons & Energy and Packaging and Specialty Plastics. This segment employs a polyolefin product portfolio. Industrial Intermediates & Infrastructure segment consists of two customer-centric global businesses: Industrial Solutions and Polyurethanes & Construction Chemicals that develop intermediate chemicals that are essential to manufacturing processes, as well as downstream, customized materials and formulations that use advanced development technologies. Performance Materials & Coatings segment consists of two global businesses: Coatings & Performance Monomers and Consumer Solutions.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Dividend Declaration: Dow Chemical has declared a dividend of $0.35 per share, payable on March 13, 2026, to shareholders of record on February 27, 2026, marking the 458th consecutive dividend payment since 1912, which underscores the company's robust cash flow and commitment to shareholder returns.
- Market Position: As a leading materials science company, Dow serves high-growth markets such as packaging, infrastructure, mobility, and consumer applications, with approximately $40 billion in sales for 2025, reflecting its strong influence and market share across multiple industries.
- Global Operations: Dow operates manufacturing sites in 29 countries and employs around 34,600 people, which not only enhances the company's production capacity but also strengthens its competitive edge in international markets.
- Sustainability Commitment: Dow is committed to achieving carbon neutrality and is constructing an integrated ethylene cracker and derivatives facility in Alberta, demonstrating its strategic resolve in addressing climate change and promoting sustainable development.
See More
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- ETF Trading Mechanism: ETFs trade like stocks, with investors buying and selling 'units' that can be created or destroyed based on demand, impacting the ETF's liquidity and market performance.
- Inflows and Outflows Monitoring: Weekly monitoring of changes in shares outstanding helps identify ETFs experiencing significant inflows (new units created) or outflows (old units destroyed), as these liquidity shifts can affect the performance of individual stocks held within the ETFs.
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- Strong Technical Indicators: The current price is above the 20-, 50-, and 200-day averages, showcasing bull control, while the RSI hovers in the low 70s, signaling robust demand, and the MACD indicator is widening to the upside, further supporting the upward trend.
- Restructuring Plan Impact: Dow's launch of the “Transform to Outperform” initiative on January 29 involves cutting 4,500 jobs, targeting $2 billion in near-term EBITDA gains, and embedding AI across production and supply chains, aimed at navigating a tougher chemicals cycle.
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- Dow's Earnings Beat: Dow reported an adjusted loss of 34 cents per share for Q4 on January 29, surpassing Wall Street's projected loss of 46 cents, indicating the company's resilience amid challenging market conditions.
- Goldman's AI Collaboration: On February 6, Goldman Sachs announced its collaboration with AI startup Anthropic to develop AI agents for automating key banking functions, showcasing its forward-looking strategy in the fintech sector.
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- Cyclical Industry Rally: Despite software stocks experiencing one of their worst weeks since the 2022 rate-hike panic, cyclical and consumer-linked industries have continued their recent rallies, indicating a growing preference for traditional sectors among investors.
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