- Corteva (NYSE:CTVA) -1.9% after-hours as Q2 adjusted earnings edge estimates, partly due to cost cuts, but revenues slip 3% to $5.4B.
- The company says good weather and higher planted area shifted corn volumes in North America from Q2 to Q1, while its pesticides business was pressured by a strong performance last year when the Latin America season started earlier.
- After suspending its FY 2020 forecast in May due to uncertainty from the COVID-19 crisis, Corteva now foresees full-year operating EPS of $1.25-$1.45, with operating EBITDA of $1.9B-$2B and net sales growth of 1%-2%, which translates to a sales range of $13.98B-$14.12B.
- The company's original estimates were for earnings of $1.45-$1.55/share on sales of ~$14.5B, reflecting a weaker Brazilian real and weaker corn demand; analyst consensus forecast saw EPS of $1.40 on sales of $14.2B.
- Corteva says its H2 priorities include accelerating productivity actions and supporting the launch of key innovations, such as its Enlist weed control system.
- Corteva, along with CF Industries and Nutrien, recently was double upgraded to Buy from Underperform at Bank of America on a broadly improving ag outlook.