Why DuPont Stock Topped the Market on Tuesday

Key Points

• The company beat the consensus analyst estimates for both revenue and profitability in its second quarter.

• It also raised guidance, hence the positive investor reaction.

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On the back of a beat-and-raise second quarter, storied chemical company DuPont (NYSE: DD) saw a satisfying share price rise on Tuesday. The company's stock became more than 2% more valuable that trading session as the market digested its results. That increase was particularly impressive when matched against the S&P 500 index's 0.5% slide on the day.

Two beats in quarter two

DuPont's earnings release, published before market open, revealed that the company's revenue for the period was $3.26 billion. That was 3% higher than that of the same quarter last year. It was also high enough -- albeit barely -- to edge past the consensus $3.24 billion analyst estimate.

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Within its sprawling product assortment, DuPont saw particularly robust growth in its electronics segment, which saw a 6% rise in sales. As for regional performance, the Asia Pacific region led with a 4% increase, followed by 2% in Europe, the Middle East and Africa, and 1% in North America.

On the bottom line, non-GAAP (adjusted) net income cranked quite a bit higher. It came in at $468 million, or $1.12 per share; this was nearly 15% above the year-ago profit. It also represented a more convincing beat for DuPont, as the collective pundit forecast was $1.06 per share.

In the earnings release, DuPont quoted CEO Lori Koch as saying that "Ongoing strength in electronics, healthcare and water end-markets, along with our team's focus on operational execution continued to drive strong earnings growth and cash conversion."

Annual bottom-line boost

With those tailwinds, DuPont is clearly feeling bullish about the future. It raised its full-year guidance for adjusted net income, which is now anticipated to ring in at around $4.40 per share. That should derive from roughly $12.85 billion in net sales.

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.