Core Insights - Dow Inc. (DOW) is set to announce its fourth-quarter 2025 results on January 29, with a history of mixed earnings surprises, having surpassed estimates in two of the last four quarters and missed in two, resulting in an average negative earnings surprise of 35.8% over the trailing four quarters [1][2] Revenue Estimates - The Zacks Consensus Estimate for DOW's fourth-quarter consolidated revenues is $9,487.1 million, reflecting an 8.8% year-over-year decline [5] - Revenue estimates for the Packaging & Specialty Plastics segment are projected at $4,834 million, indicating a 13% decline year-over-year [5] - The Industrial Intermediates & Infrastructure segment is expected to generate $2,653 million, representing an 8.6% year-over-year decline [5] - The Performance Materials & Coatings segment's revenue estimate is $1,836 million, suggesting a 5.5% year-over-year decrease [7] Market Conditions - DOW is facing challenges from soft demand in Europe and Asia, weaker prices, and higher feedstock costs, which are expected to impact its fourth-quarter performance [6][8] - Inflationary pressures are affecting consumer spending, particularly in the construction and automotive sectors, leading to reduced demand [9] - The property sector in China is sluggish, with declining new home prices affecting demand recovery [8] Cost Management Initiatives - DOW is implementing cost-saving and productivity initiatives, targeting $1 billion in cost cuts, with an anticipated benefit of $400 million in 2025 [6][11] - These cost-saving actions are expected to positively impact the company's bottom line in the upcoming quarter [11] Earnings Prediction - The Earnings ESP for DOW is +12.87%, but the current Zacks Rank is 4 (Sell), indicating that the model does not predict a conclusive earnings beat for this quarter [12][13]

Core Viewpoint - Dow Inc. (DOW) is expected to report second-quarter 2025 results on July 24, with anticipated challenges from weak demand and pricing pressures despite productivity initiatives [1][6]. Revenue Estimates - The Zacks Consensus Estimate for DOW's revenues in the upcoming quarter is $10,445.6 million, indicating a year-over-year decline of 4.6% [4]. - Revenue estimates for specific segments include: - Packaging & Specialty Plastics: $5,197.9 million, a decline of 5.8% year over year [4]. - Industrial Intermediates & Infrastructure: $2,884.6 million, a decline of 2.3% year over year [4]. - Performance Materials & Coatings: $2,142.1 million, a decline of 4.5% year over year [7]. Factors Affecting Performance - DOW is facing headwinds from soft demand in Europe and China, with lower consumer spending and weak construction and manufacturing activities impacting performance [8][9]. - Inflationary pressures are affecting demand in consumer durables and construction, while automotive demand in Europe is also weak [9]. - The Performance Materials & Coatings segment is challenged by weak siloxane prices due to increased supply in Asia, particularly from China [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 expects to realize around $300 million in benefits from these actions in 2025, with full benefits anticipated by 2026 [11]. Earnings Prediction - The Earnings ESP for DOW is -53.04%, indicating a low likelihood of an earnings beat this quarter, with a consensus estimate of a loss of 8 cents [12][13]. - DOW currently holds a Zacks Rank of 5 (Strong Sell) [13].

Core Viewpoint - Dow Inc.'s shares have declined by 22% over the past three months due to soft end-market demand and pricing pressures in a challenging macroeconomic environment [1] Group 1: Stock Performance - Dow has underperformed compared to the Zacks Chemicals Diversified industry's decline of 16.6% and the S&P 500's fall of 4.3% in the same period [2] - The stock has been trading below the 200-day simple moving average (SMA) since October 7, 2024, indicating a bearish trend [5][7] Group 2: Demand Challenges - Demand softness in Europe and China is impacting Dow, with lower consumer spending and weak construction and manufacturing activities [9] - The infrastructure end market, including residential construction, remains weak, and inflationary pressures are affecting demand in consumer durables [10] Group 3: Pricing Pressures - Dow's Performance Materials & Coatings unit is facing weak siloxane prices due to supply additions in Asia, which have negatively impacted sales [11] Group 4: Growth and Cost Management - Dow is focused on high-return growth projects and cost actions, expecting to deliver approximately $6 billion in cash support through infrastructure asset sales and cost savings [13] - The company plans to cut costs by $1 billion, including a workforce reduction of around 1,500 roles globally [13] Group 5: Financial Health - Dow has a strong balance sheet with over $11 billion in liquidity and has returned $2.5 billion to shareholders in 2024 [14] - The company offers a healthy dividend yield of 9.1%, which is perceived as safe and reliable despite a high payout ratio of 239% [15] Group 6: Earnings Estimates - The Zacks Consensus Estimate for Dow's 2025 earnings has been revised downward over the past 60 days, indicating declining earnings prospects [16] Group 7: Valuation - Dow is currently trading at a forward P/E of 43X, representing a 138% premium compared to the industry average of 18.07X [17]

Core Viewpoint - Dow Inc. is expected to report a decline in first-quarter 2025 results due to soft demand and pricing pressures, despite some benefits from productivity initiatives [1][2]. Revenue Estimates - The Zacks Consensus Estimate for Dow's revenues in the upcoming quarter is $10,271.4 million, reflecting a year-over-year decline of 4.6% [6]. - Revenue estimates for the Packaging & Specialty Plastics segment are projected at $5,172.1 million, indicating a 4.8% decline year over year [6]. - The Industrial Intermediates & Infrastructure segment is expected to generate $2,872.6 million, showing a 4.5% year-over-year decline [6]. - The Performance Materials & Coatings segment is estimated to bring in $2,098.2 million, suggesting a 2.5% decline year over year [7]. Factors Affecting Q1 Results - Dow is facing demand softness in Europe and China, with lower consumer spending due to inflation impacting demand in Europe [8]. - Construction and manufacturing activities in Europe remain weak, while the property sector in China is sluggish with declining new home prices [8]. - Inflationary pressures are affecting demand for consumer durables and construction, with automotive demand in Europe also softening [9]. - The Performance Materials & Coatings unit is challenged by weak siloxane prices due to competitive pricing pressures from increased supply in Asia [10]. - Higher feedstock and energy costs are expected to impact earnings, with a projected $100 million headwind in the Packaging & Specialty Plastics segment [12]. Cost-Saving Initiatives - Dow is implementing targeted actions to reduce direct and labor costs, aiming to cut costs by $1 billion to improve margins [13]. - The benefits of these cost-saving actions are anticipated to be reflected in the company's bottom line for the upcoming quarter [13]. Earnings Prediction - The Earnings ESP for Dow is currently at 0.00%, with a consensus estimate indicating a loss of 2 cents for the first quarter [15]. - Dow carries a Zacks Rank of 5 (Strong Sell), indicating a low likelihood of an earnings beat this season [16].