Corteva's Q3 revenue misses on price declines; forecasts FY26 EBITDA, EPS below expectations
Overview
Crop protection firm's Q3 revenue fell 9% yr/yr, missing analyst expectations
Adjusted EPS for Q3 was $0.06, down 57% yr/yr
Company updated full-year outlook, citing weaker market in Brazil
Shares fell 4.7% in after-hours trading
Outlook
Corteva expects FY26 adjusted pro forma operating EBITDA of $1.1 bln to $1.125 bln, vs analysts' estimate of $1.82 bln
Sees FY26 adjusted pro forma operating EPS of $0.76 to $0.80, vs analysts' estimate of $1.64
Corteva says market conditions in Brazil are weaker than previously anticipated
Result Drivers
NEW PRODUCT SALES - Strong demand for new and differentiated products contributed to growth in North America, EMEA, and Asia Pacific, according to the company
BRAZIL MARKET WEAKNESS - Challenging market dynamics in Brazil, including elevated channel inventory, delayed purchasing, and high interest rates, led to a 31% decline in Latin America organic sales, per company
PRICING PRESSURE - Price declined 7% in Q3, driven by competitive pressure on molecules late in their lifecycle in Brazil and U.S. acetochlor, according to the company
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Miss | $1.59 bln | $1.76 bln (5 Analysts) |
Q3 Operating EPS | $0.06 |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 16 "strong buy" or "buy", 7 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the agricultural chemicals peer group is "buy"
Wall Street's median 12-month price target for Corteva, Inc. is $17.00, about 39.7% above its November 10 closing price of $12.17
The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 3 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)