Dow sees Q3 EBITDA at $1.62-1.78B, midpoint above consensus, as packaging margins improve. Middle East instability and weak European construction remain risk factors the company did not quantify.
Alpha Score of 50 reflects moderate overall profile with moderate momentum, moderate value, poor quality, moderate sentiment.
Dow Inc. raised the midpoint of its third-quarter profit outlook on Friday, citing a pickup in packaging and specialty plastics volumes. The company now expects EBITDA of $1.62 billion to $1.78 billion, up from a prior range of $1.5 billion to $1.9 billion. The midpoint of $1.7 billion beats the $1.66 billion analysts had penciled in, per LSEG data.
The chemical giant said lower feedstock costs and stronger industrial packaging demand drove the improvement. Those gains were partly offset by a still-weak European construction market. Dow said infrastructure spending in the region has not bounced back as fast as expected.
The Middle East conflict introduces another risk. Dow flagged potential disruption to supply chains and raw material costs, especially for ethylene and propylene derivatives sourced from the region. It did not put a number on the possible hit.
Shares of Dow were little changed in premarket trading. The stock has declined roughly 2% year to date, trailing the broader market.
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