Markets wavered on Wednesday, as shares of The Dow Chemical Company (DOW) were on the rise after they outperformed expectations. Dow posted profits that beat out analysts’ expectations due to higher prices and a strong control on costs. The company posted profits of $882 million, or 73 cents per share. Estimates for the quarter came in at 72 cents per share. Despite the seemingly positive results, they still took a drastic fall of 62% from this time last year when the company reported profits of $2.34 billion, or $1.87 per share. Revenue came in 2.3% higher at $14.92 million. This also surpassed analysts’ expectations of $14.82 billion. A senior analyst at Key Private Bank, Stephen Hoedt, said, “It was a solid quarter all around and I think it caught some people by surprise because of the leverage they saw to commodity prices.” The company is known for making all types of products from insecticides to plastics. They also noted that sales were up across all fronts of their six businesses.
Shares of Pepsico, Inc. (PEP) were trading up over 2.9% after the company announced that they would be raising their profit forecast for the year and posted a strong quarter. The company is widely known for making Papsi-Cola, Frito-Lay and Tropicana juices. Pepsico said they expect full year earnings to increase 8% from previously reported 7%. Net income for the quarter was down to $1.98 billion, or $1.29 per share. This is down from the $2.01 billion, or $1.28 per share a year ago. Revenue was up 0.5% to $16.89 billion. The company reported that sales of their snack business jumped up 5% globally. Pepsico’s Chief Financial Officer, Hugh Johnston, said, “The business is performing well right now, and as we’ve gotten further into the year we’ve got confidence that we could take it up. As we look at the balance of the year, we feel we have a pretty clean pathway.”
Shares of The Boeing Company (BA) were trading lower after the company reported quarterly earnings. The company showed a 52% jump in quarterly profits, which was partially attributed to a rise in commercial aircraft deliveries. There was a rise of 7% in aircraft deliveries to 181. Net income was up to $$1.65 billion, or $2.24 per share. This up from $1.09 billion, or $1.41 per share, this time last year. Core earnings were up to $2.42 per share from last year’s $1.67. Revenue was up 1% to $22.05 billion.
That’s all for today,
Warren Gates, Normandy Research