Corteva Sinks 3.9% on Q4 Earnings Miss

Corteva, Inc. (NYSE: CTVA) has reported mixed results for the fourth quarter of 2021 as earnings lagged but revenue surpassed estimates. Shares of the company declined 3.9% in Wednesday’s extended trading session to close at $46.24.

The agricultural chemical and seed company develops and supplies advanced germplasm and traits that help in maximizing yield for farms.

Operating earnings of $0.08 per share doubled year-over-year and came below the Street’s expectations of $0.09. Adjusted revenue during the quarter rose 9% year-over-year to $3.49 billion. Also, it beat analysts’ expectations of $3.46 billion.

Crop Protection net sales climbed 6% in the fourth quarter due to price execution. Meanwhile, Seed net sales rose 12% driven by double-digit gains in Latin America on strong demand for corn and price execution across all regions.

Corteva’s CEO, Chuck Magro, said, “Global agriculture fundamentals remain strong going into 2022, and we expect demand across the industry to remain resilient despite other macro challenges. We expect to deliver continued growth by advancing our market-leading technologies, while maintaining a focus on operational excellence.”

“We also remain committed to a disciplined capital deployment strategy, which includes investing for future growth while returning cash to shareholders via dividends and share repurchases,” he added.

Outlook

For 2022, Corteva expects net sales between $16.7 billion and $17 billion. Also, operating EPS range is expected to be between $2.30 and $2.50 per share. Further, operating EBITDA is expected to be in the range of $2.8 billion to $3 billion.

Wall Street’s Take

Following the results, Mizuho Securities analyst Chris Parkinson maintained a Buy rating on Corteva with a price target of $55 (14.3% upside potential from current levels).

Overall, the Street is optimistic about the stock with a Strong Buy consensus rating based on 5 Buys and 1 Hold. The Corteva stock price prediction of $56.20 implies 16.8% upside potential to current levels.

Positive News Sentiment

TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on Corteva with 12.4% of investors increasing their exposure to CTVA stock over the past seven days.

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