DuPont Hits new 52-Week High

Just a quick note on DuPont (DD). Here’s another good example of a boring company that can be a great buy.

Back when the world blew up, the stock dropped as low as $16 a share. But let’s look at the recent earnings trend. Last quarter, DD beat Wall Street’s forecast by 24%. The quarter before that, they beat by 17%. Then by “just” 7%. But the two before that were earnings beats of 36% and 15%. That’s a great run.
When the last earnings report came out, DuPont raised their full-year guidance range from $2.50 to $2.70 per share to $2.90 to $3.05 per share. That’s a hefty increase.
In June, DuPont’s CFO spoke of the company’s bold goals:

Fanandakis reaffirmed the company’s commitment to deliver about 20 percent compound annual earnings growth for the 2009-2012 periods. By executing on priorities, DuPont expects to generate about 10 percent top-line compound annual growth for the 2009-2012 periods. As previously disclosed, the company also plans to capture $1 billion in fixed cost productivity and $1 billion in working capital productivity gains during the 2010-2012 timeframe.

Posted by Eddy Elfenbein on September 13th, 2010 at 12:51 pm

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