Loading...
•
Sep 30, 2023
Corteva Q3 2023 Earnings Report
Corteva's third quarter results reflected a decrease in net sales and a loss from continuing operations, impacted by volume declines and strategic product exits, while price increases partially offset the declines.
Key Takeaways
Corteva reported a 7% decrease in net sales for the third quarter of 2023, with a GAAP loss from continuing operations of $315 million and a non-GAAP operating EPS of $(0.23). The sales decline was attributed to lower volumes, particularly in the Crop Protection segment, although price increases partially mitigated the impact. Management has affirmed the full-year net sales and earnings guidance.
Net sales decreased 7% versus the same period last year.
Organic sales declined 13%.
Volume declined 15% versus the prior-year period driven by strategic product exits and ongoing headwinds in the Crop Protection segment.
GAAP income from continuing operations after income taxes was a loss of $315 million.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Corteva expects net sales in the range of $17.0 billion to $17.3 billion, down 2% versus prior year at the mid-point. Operating EBITDA is expected to be in the range of $3.25 billion to $3.45 billion, growth of 4% at the mid-point. Operating EPS is expected to be in the range of $2.50 to $2.70 per share, down 3% at the mid-point.
Positive Outlook
- Global agriculture outlook remains positive overall in 2023, with high demand for grain and oilseeds.
- Commodity prices are above historical averages.
- Farm balance sheets and income levels remain generally healthy.
- Growers are encouraged to prioritize technology to maximize return.
- Operating EBITDA is expected to be in the range of $3.25 billion to $3.45 billion, growth of 4% at the mid-point.
Challenges Ahead
- Company’s outlook for its operations in Brazil has been revised, influenced by lower-than-expected corn planted area.
- Ongoing headwinds in crop chemicals.
- Delayed farmer purchases on both plantings and crop protection applications.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...