DOW INC Reports Q4 Fiscal Year 2022 Earnings with USD 0.6 Billion in Revenue and USD 11.9 Billion in Net Income, Down 64.9% and 17.4%, Respectively, from Previous Year

Earnings report

DOW INC ($NYSE:DOW), a global leader in the chemicals and plastics industry, recently released its fourth quarter fiscal year 2022 earnings report. The report was released on January 26, 2023, and revealed that total revenue for the quarter was USD 0.6 billion, a 64.9% decrease from the same quarter in the previous year. Net income was USD 11.9 billion, a 17.4% decrease from the same quarter in the previous year. The company’s sales have been significantly affected by the pandemic, as travel restrictions, business closures, and other social distancing measures have caused disruption in the global supply chain. This segment accounts for nearly half of the company’s overall revenue, and its performance is indicative of the broader economic downturn caused by the pandemic.

The company has launched several new initiatives in recent months to help offset the economic impacts of the pandemic. These initiatives have focused on developing new products and services, streamlining operations, and expanding into new markets. Despite this, the company remains committed to innovating and investing in new technologies, and is hopeful that its efforts will pay off in the long run.

Price History

On Thursday, DOW INC reported its fiscal year 2022 fourth quarter earnings. The company reported USD 0.6 billion in revenue, down 64.9% from the same period last year, and USD 11.9 billion in net income, down 17.4% from the previous year. In response to the earnings, DOW INC stock opened at $56.7 and closed at $58.1, up 0.4% from its last closing price of 57.9. The disappointing earnings report is indicative of the global economic downturn due to the pandemic. In addition to declining revenues, DOW INC has been forced to cut expenses, resulting in a 17.4% drop in net income. This has been exacerbated by the ongoing trade war between the US and China, which has put a strain on many companies in the industry.

The company is now facing the challenge of how to turn around its fortunes in light of these difficult economic conditions. DOW INC plans to invest in digital transformation and new technologies to create innovative products and services for its customers. It is also looking to strengthen its existing partnerships with suppliers and customers to ensure long term success. Despite the challenging economic environment, DOW INC’s shares remain strong, suggesting that investors are still confident in the company’s potential for growth. The company will now be looking to capitalize on its strengths and use its resources to build a sustainable and profitable future. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Dow Inc. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Dow Inc. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Dow Inc. More…

Key Ratios Snapshot

Some of the financial key ratios for Dow Inc are shown below. More…

VI Analysis

VI app makes analyzing DOW INC‘s long-term potential simpler by providing a comprehensive look at the company’s fundamentals. According to the VI Star Chart, DOW INC has an intermediate health score of 6/10 in terms of cashflow and debt, suggesting that they might be able to sustain future operations in times of crisis. In terms of its other fundamentals, DOW INC is strong in asset, medium in dividend, profitability and weak in growth. It is classified by VI as a ‘rhino’, a type of company that has achieved moderate revenue or earnings growth. Investors who are seeking a relatively safe investment, with the potential for moderate returns, may find DOW INC appealing. The company’s strong asset base and ability to withstand economic downturns could make it a viable option for those seeking to preserve capital while still achieving some growth. Additionally, the dividend yield is above average, which could make DOW INC attractive to income investors. Finally, those investors looking for long-term growth may be interested in investing in DOW INC due to its moderate growth rate. More…

VI Peers

In the world of petrochemical manufacturing, Dow Inc. is one of the big players. The company competes against other large manufacturers such as LyondellBasell Industries NV, Westlake Corp, and Huntsman Corp. While each company has its own strengths and weaknesses, Dow Inc. has been able to stay ahead of the competition and maintain a position as one of the leading manufacturers in the industry.

– LyondellBasell Industries NV ($NYSE:LYB)

LyondellBasell Industries is a large, publicly traded chemical company with operations in over 20 countries. The company produces a wide range of chemicals and plastics, including ethylene, propylene, and polyethylene. LyondellBasell is one of the world’s largest producers of these materials.

The company has a market capitalization of over $25 billion and a return on equity of over 35%. LyondellBasell is a publicly traded company on the New York Stock Exchange under the ticker symbol LYB.

– Westlake Corp ($NYSE:WLK)

Westlake Corp is a publicly traded company with a market capitalization of $11.86 billion as of 2022. The company has a return on equity of 27.65%. Westlake Corp is engaged in the business of manufacturing and marketing of chemicals, plastics, and rubber products. The company has operations in North America, Europe, Asia, and South America.

– Huntsman Corp ($NYSE:HUN)

The company, Huntsman Corporation, is a publicly traded company with a market capitalization of 5.28 billion as of 2022. The company has a return on equity of 24.15%. Huntsman Corporation is a chemical company that manufactures and sells differentiated chemicals. The company operates in four segments: Polyurethanes, Performance Products, Advanced Materials, and Textile Effects. The company was founded in 1970 and is headquartered in The Woodlands, Texas.

Summary

Investing in DOW INC is a risky proposition after the company reported poor year-over-year results for the fourth quarter of fiscal year 2022. Revenue for the quarter was down 64.9% from the same period in the previous year and net income decreased 17.4%. This paints a bleak picture for the future of DOW INC and should give investors pause before investing in the company. Analysts are likely to focus on the overall trends in the company’s financial performance to determine whether or not to invest in DOW INC. It is important to note that the company’s performance has been volatile over the past few years and investors should take caution before investing.

Additionally, it may be wise to look into other investments that may offer more stability.