Corteva, Inc. (CTVA), incorporated in 2018 and headquartered in Indianapolis, Indiana, is a leading global seed and crop protection solution provider. With a market cap of $41.8 billion, Corteva is dedicated to advancing agriculture through innovative and sustainable practices that enhance productivity and resilience for farmers worldwide. The company is set to release its fourth-quarter earnings after the market closes on Wednesday, Feb. 5.
Ahead of this event, analysts project the agricultural chemical company to report a profit of $0.35 per share, up 133.3% from $0.15 per share in the year-ago quarter. The company beat the consensus estimates in three of the last four quarters while missing on one other occasion.
Its adjusted loss of $0.49 per share in the last quarter missed the consensus estimates by 58.1%. Corteva's quarterly loss stemmed from reduced revenues due to lower demand, pricing pressures, and higher operating expenses.
For fiscal 2024, analysts expect CTVA to report an EPS of $2.59, down 3.7% from $2.69 in fiscal 2023. Nevertheless, EPS is expected to grow 24.3% year-over-year to $3.22 in fiscal 2025.
Corteva's shares have climbed 32.1% over the past 52 weeks, outperforming the S&P 500 Index's ($SPX) 24.4% gain and significantly exceeding the Materials Select Sector SPDR Fund’s (XLB) 4.3% return over the same period.
Corteva has outperformed the broader market and its peers due to strong product innovation, a solid customer base, effective cost management, and strategic investments in sustainability, positioning the company well for long-term growth despite short-term challenges.
However, following its disappointing Q3 results on Nov. 6, the company’s shares fell 5%, with net sales dropping 10.2% year-over-year to $2.33 billion, falling short of the consensus estimate of $2.69 billion. For 2024, Corteva updated its guidance, projecting net sales of $17.0 to $17.2 billion, operating EBITDA between $3.35 and $3.45 billion, and free cash flow from $1.5 to $2.0 billion. Looking to 2025, the company anticipates net sales of $17.3 to $17.7 billion and operating EBITDA of $3.6 to $4.0 billion, reflecting a moderate growth outlook.
Analysts' consensus view on Corteva’s stock is bullish, with a "Strong Buy" rating overall. Among 18 analysts covering the stock, 12 recommend a "Strong Buy," two suggest a "Moderate Buy," and four indicate a “Hold.”
The average analyst price target for CTVA is $67.38, indicating a 10.6% potential upside from the current levels.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here. More news from Barchart- Is Block Stock a Buy, Sell, or Hold Ahead of Ticker Change to XYZ?
- Despite Berkshire Selling 605,000,000 Apple Shares, Buffett Still Says It's a 'Wonderful Company'
- This Red-Hot Quantum Computing Stock Trades for Less Than $1. Is It a Buy Now?
- Is Target Stock a Buy After a Strong Holiday Shopping Season?
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
