Here's why we're sticking with DuPont despite a noisy quarter
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DuPont on Tuesday issued soft guidance for the second half of the year, overshadowing solid second-quarter results despite disruptions from the war in Iran. There's still plenty to like about the streamlined company, as it improves profitability and grows its exposure to healthcare and clean-water technology. Revenue rose 4% year over year to $1.82 billion, topping the $1.81 billion consensus, according to estimates compiled by LSEG. Adjusted earnings per share (EPS) totaled $1.88, a healthy beat versus the $1.76 consensus, LSEG data showed. Compared with a year ago, adjusted EPS rose 48%. DuPont's results and guidance weren't as bad as early-morning trading indicated, when shares opened down nearly 8%. The market is, thankfully, recognizing that was an overreaction and buyers have stepped in, with shares now down less than 1% in the afternoon. DuPont entered Tuesday's session up a respectable 17% year to date, outperforming the S & P 500 's roughly 11% advance. But the stock's highest close of the year - at almost $155 a share - came all the way back on Feb. 11. Why we own it DuPont has wisely simplified its portfolio by spinning off its electronics division into a standalone company, Qnity, and selling its synthetic fibers business behind Kevlar bulletproof vests. The remaining DuPont sells a range of materials and components used across the healthcare, water, and broader...
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