Earnings Preview: What to Expect From Dow’s Report

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Dow Inc. (DOW), with a market capitalization of $20.1 billion, provides innovative and sustainable solutions across key sectors including packaging, infrastructure, mobility, and consumer care. Headquartered in Midland, Michigan, the company is known for its scale and cutting-edge technology, notably operating the world’s largest ethylene cracker in Freeport, Texas, as part of its extensive global manufacturing network. Dow is scheduled to report its Q2 earnings before the market opens on Thursday, July 24.

Ahead of the event, analysts expect the materials science company to report a loss of $0.06 per share, down 108.8% from a profit of $0.68 per share in the same quarter last year. The company has surpassed Wall Street's bottom-line estimates in two of the past four quarters while missing on two other occasions. 

For the current year, analysts expect DOW to report an EPS of $0.31, down 81.9% from $1.71 in fiscal 2024. However, the EPS is expected to rebound in fiscal 2026, improving 167.7% annually to $0.83.

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Over the past 52 weeks, DOW has declined 46.2%, underperforming both the S&P 500 Index's ($SPX13.4% rise and the Materials Select Sector SPDR Fund's (XLB4.1% increase over the same period.

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On June 23, shares of Dow declined by more than 3% following a downgrade by BMO Capital Markets. The firm revised its rating on the stock from "Market Perform" to "Underperform" and set a new price target of $22, signaling a more cautious outlook on the company's near-term performance. The downgrade reflected concerns over potential headwinds facing Dow’s end markets, including continued softness in global demand and pressure on margins, which could weigh on the company’s earnings and stock performance in the future.

Analysts' consensus view on DOW stock is cautious, with an overall "Hold" rating. Among 18 analysts covering the stock, two recommend a "Strong Buy," 14 give a "Hold," one suggests “Moderate Sell,” and one “Strong Sell.” Its mean price target of $32.72 implies an upswing potential of 15% from the prevailing market prices. 


On the date of publication, Kritika Sarmah 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.