Dow(US:DOW) ZACKS·2025-10-21 13:42Core Insights - Dow Inc. (DOW) is set to release its third-quarter 2025 results on October 23, with expectations of a revenue decline of 6.5% year-over-year to $10.18 billion [1][7] - The company has a history of mixed earnings performance, with a trailing four-quarter negative earnings surprise averaging 44.9% and a significant negative surprise of 281.8% in the last quarter [1][2] Revenue Estimates - The Zacks Consensus Estimate for DOW's revenues is $10,175.4 million, indicating a 6.5% decline from the previous year [4] - Revenue estimates for specific segments include: - Packaging & Specialty Plastics: $5,129.9 million, down 7% year-over-year [4] - Industrial Intermediates & Infrastructure: $2,812.4 million, down 5.1% year-over-year [4] - Performance Materials & Coatings: $2,080.1 million, down 6.1% year-over-year [5] Factors Impacting Performance - Demand softness in Europe and China is expected to negatively affect DOW's performance, with lower consumer spending and weak construction and manufacturing activities in Europe [8][9] - Inflationary pressures are impacting demand across consumer durables and construction sectors, contributing to weak volumes [9] - The Performance Materials & Coatings unit is facing challenges from weak siloxane prices due to increased supply in Asia, alongside a $125 million headwind from higher maintenance activities [10] Cost-Saving Initiatives - DOW is implementing cost-saving measures aimed at reducing direct and labor costs, targeting $1 billion in savings to improve margins [11] - The company anticipates around $400 million in benefits from these actions in 2025, with full benefits expected by 2026 [11] Earnings Prediction - Current models do not predict an earnings beat for DOW, with an Earnings ESP of -1.12% and a Zacks Rank of 4 (Sell) [12][13]