Some May Be Optimistic About DuPont de Nemours' (NYSE:DD) Earnings

Shareholders appeared unconcerned with DuPont de Nemours, Inc.'s (NYSE:DD) lackluster earnings report last week. Our analysis suggests that while the profits are soft, the foundations of the business are strong.

We've discovered 3 warning signs about DuPont de Nemours. View them for free.

The Impact Of Unusual Items On Profit

Importantly, our data indicates that DuPont de Nemours' profit was reduced by US$1.2b, due to unusual items, over the last year. While deductions due to unusual items are disappointing in the first instance, there is a silver lining. We looked at thousands of listed companies and found that unusual items are very often one-off in nature. And that's hardly a surprise given these line items are considered unusual. In the twelve months to March 2025, DuPont de Nemours had a big unusual items expense. All else being equal, this would likely have the effect of making the statutory profit look worse than its underlying earnings power.

That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates.

Our Take On DuPont de Nemours' Profit Performance

As we discussed above, we think the significant unusual expense will make DuPont de Nemours' statutory profit lower than it would otherwise have been. Because of this, we think DuPont de Nemours' underlying earnings potential is as good as, or possibly even better, than the statutory profit makes it seem! On the other hand, its EPS actually shrunk in the last twelve months. The goal of this article has been to assess how well we can rely on the statutory earnings to reflect the company's potential, but there is plenty more to consider. So if you'd like to dive deeper into this stock, it's crucial to consider any risks it's facing. Every company has risks, and we've spotted 3 warning signs for DuPont de Nemours you should know about.

Today we've zoomed in on a single data point to better understand the nature of DuPont de Nemours' profit. But there is always more to discover if you are capable of focussing your mind on minutiae. Some people consider a high return on equity to be a good sign of a quality business. So you may wish to see this free collection of companies boasting high return on equity, or this list of stocks with high insider ownership.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.