===DuPont (DD) announces plan to separate into three separate publicly traded companies

DuPont de Nemours, Inc., commonly shortened to DuPont, is an American multinational chemical company first formed in 1802 by French-American chemist and industrialist Éleuthère Irénée du Pont de Nemours. 

• In 2015, DuPont and the Dow Chemical Company agreed to a reorganization plan in which the two companies would merge and split into three. 
• As a merged entity, DuPont simultaneously acquired Dow and renamed itself to DowDuPont on August 31, 2017, and after 18 months spun off the merged entity's material science divisions into a new corporate entity bearing Dow Chemical's name and agribusiness divisions into the newly created Corteva; DowDuPont reverted its name to DuPont and kept the specialty products divisions.

DuPont announces plan to separate into three separate publicly traded companies, including separations of its Electronics and Water businesses; also reaffirms Q2 and FY24 guidance

• Co announces a plan to separate into three distinct, publicly traded companies. Under the plan, DuPont would execute the proposed separations of its Electronics and Water businesses in a tax-free manner to its shareholders with New DuPont continuing as a premier diversified industrial company following completion of the separations. As independent entities, both Electronics and Water will benefit from increased focus and agility in their respective industries.
• New DuPont will be a premier diversified industrial company with iconic brands such as Tyvek, Kevlar and Nomex. New DuPont will have a strong presence in fast-growing healthcare end-markets including applications for biopharma consumables, medical devices, and medical packaging.
  • New DuPont will be comprised of the existing businesses within the Water & Protection segment (excluding Water Solutions), the majority of businesses within Industrial Solutions (including healthcare), and the retained businesses reported in Corporate.
  • These businesses generated net sales of approximately $6.6 billion and operating EBITDA margin of approximately 24% in 2023.
• Electronics will be a global provider of differentiated electronics materials including key consumables used in semiconductor chip manufacturing, as well as advanced electronic materials enabling reliable signal integrity, power management and thermal management. The company will be well positioned to capture growth in the semiconductor industry, driven by high-performance computing demands from AI, high speed connectivity, smart and autonomous vehicles and the Internet of Things, among other mega-trend growth drivers.
  • Electronics will be comprised of the existing Semiconductor Technologies and Interconnect Solutions lines of business, as well as the electronics-related product lines from Industrial Solutions. These businesses generated net sales of approximately $4.0 billion and operating EBITDA margin of approximately 29% in 2023.
• Water will be a global technology leader with a comprehensive portfolio of water filtration and purification solutions with leading technologies in reverse osmosis, ion exchange and ultrafiltration.
  • Water will be comprised of DuPont's current Water Solutions line of business which generated net sales of approximately $1.5 billion and operating EBITDA margin of approximately 24% in 2023.
• Co reaffirms guidance for Q2 (Jun), sees Q2 (Jun) revs of $3.025 vs. $3.04 bln FactSet Consensus.
• Co reaffirms guidance for FY24 (Dec), sees EPS of $3.45-$3.75, excluding non-recurring items, vs. $3.63 FactSet Consensus; sees FY24 (Dec) revs of $12.1-$12.4 bln vs. $12.27 bln FactSet Consensus.

Third Point (Dan Loeb) discloses updated portfolio positions in 13F filing

New AMZN OPCH FIS UBER TSM ICE positions, Exited CL NATI

Highlights from Q2 2023 filing as compared to Q1 2023:

• New positions in: AMZN (~4.1 mln shares), OPCH (~3.5 mln), FIS (~0.3 mln), UBER (~2.78 mln), TSM (~2.45 mln), ICE (~1.85 mln), ATVI (~1.65 mln), HZNP (~0.5 mln), NVDA (~0.5 mln), BKI (~0.46 mln)
• Increased positions in: BABA (to ~2.95 mln shares from ~1.33 mln shares), DEN (to ~1.68 mln from ~0.25 mln), VST (to ~3.32 mln from ~2.12 mln), J (to ~1.35 mln from ~0.19 mln), HTZ (to ~7.32 mln from ~6.35 mln), DD (to ~4.6 mln from ~4 mln), MSFT (to ~1.52 mln from ~1.05 mln) MU (to ~1.55 mln from ~1.2 mln), AMD (to ~1.2 mln from ~1 mln) IFF (to ~2.65 mln from ~2.55 mln)
• Maintained positions in: BBWI (~13.85 mln shares), AIG (~2.95 mln shares), FERG (~1.28 mln shares)
• Closed positions in: CL (from ~11.05 mln shares) NATI (from ~2 mln), NPWR (from ~1.5 mln), TECK (from ~1.15 mln), CTLT (from ~0.2 mln), HCNE (from ~0.99 mln), CRM (from ~0.8 mln), UNH (from ~0.34 mln)
• Decreased positions in: PCG (to ~54 mln shares from ~59.25 mln shares), GOOGL (to ~1.43 mln from ~4.75 mln), HCA (to ~0.6 mln from ~0.86 mln), EGGF (to ~0.95 mln from ~1.1 mln), DHR (to ~2.6 mln from ~2.75 mln)

Unusual Options Activity, Fri 6/23/23

The following options are exhibiting notable trading, potentially indicating changing sentiment toward the underlying stocks, and/or potentially representing positioning for increased volatility.

Bullish Call Activity:

• EOSE Jan24 2.5 calls are seeing interest with the underlying stock down 7% (volume: 1910, open int: 230, implied vol: ~138%, prev day implied vol: 133%). 1000 contracts traded in a single transaction. Co is expected to report earnings mid-July.
• COST Jun 525 calls (volume: 1780, open int: 1990, implied vol: ~20%, prev day implied vol: 15%). Co is expected to report earnings mid-September.
• ORCL Sep 130 calls (volume: 2490, open int: 230, implied vol: ~24%, prev day implied vol: 23%). 1290 contracts traded in a single transaction. Co is expected to report earnings mid-September.
• SNAP Aug 12 calls (volume: 24.0K, open int: 19.3K, implied vol: ~74%, prev day implied vol: 73%). 9180 contracts traded in a single transaction. Co is expected to report earnings late July.
  

Bearish Put Activity:

• HPP Sep 5 puts are seeing interest with the underlying stock down 6% (volume: 2660, open int: 10, implied vol: ~91%, prev day implied vol: 59%). 2700 contracts traded in a single transaction. Co is expected to report earnings late July.
• DD Jul 67.5 puts (volume: 2730, open int: 80, implied vol: ~27%, prev day implied vol: 24%). Co is expected to report earnings early August.
  

Sentiment: The CBOE Put/Call ratio is currently: 0.83, VIX: (12.94, +0.03, +0.2%).
July 21 is options expiration -- the last day to trade July equity options.

==DuPont de Nemours (DD) reported earnings on Tue 7 Feb 23 (b/o)

• The company posts fourth-quarter adjusted earnings of 89 cents a share from $3.1 billion in sales. Wall Street was looking for earnings of 78 cents on sales of $3.1 billion.

Earnings this week : Feb 6 - 10, 23 (wk 6)

Monday (Feb 6)

• Morning:  AMG CNA CMI ENR IDXX NBIX ON TKR TSN
• Afternoon: ATVI ACM AOSL BRBR CHGG CINF DIOD FN KMT KFRC LEG NOV PINS POWI RMBS SPG SSD SKY SWKS SAVE TTWO UDR VRNS ZI

Tuesday (Feb 7)

• Morning: ADNT AGCO ARMK ARCC BP BV CG CARR CTLT CNC CTS DCPH DD FISV IT GPK HAE HAIN HLNE HTZ INCY J KKR LIN MAC MBUU MSGS NVT OMF PINC RCL SCSC SPR TDG VVV XYL
• Afternoon:  AMCR AIZ ATO BKH CSL CMG CNO CCK DEI EGP EHC ENPH ESS EEFT EXEL FMC FTNT FRSH HRB PEAK HIW HMN ICHR ILMN INSP JKHY RAMP LUMN MODN NCR NEWR OMC PAYC PRU QGEN RRR RXO SIMO SSNC TENB VFC VRTX VSAT VOYA WERN WU YUMC ZWS

Wednesday (Feb 8)

• Morning:  BDC BXMT BG CPRI CDW CRNC CME COHR COTY CRTO CVS D ETN EPC EMR FOXA GPRE INGR NYT PAG PFGC PERI RDWR REYN RITM SITC TRMB UBER VSH YUM
• Afternoon:  ME AEIS AFRM AB NLY APP ASGN AVB ACLS AZEK CDAY CXW DHT APPS ENS NVST EFX EQH EQC ESE RE FRT FR FLT FLNC FORM FWRD ULCC GT HI HPP PI IFF FROG LNC MAT MMS MGM MC MOH MPWR ORLY PTEN PYCR PDM PPC PAA QNST RDN RPD REXR HOOD SON SONO STE STC SLF THC TTMI TWO DIS WTS XPO

Thursday (Feb 9)

• Morning: ABBV APO MT ARES AZN BAX BWA BRKR CCJ CGC CSII CIGI CYBR DBD DUK ESMT FAF GTES HLT HIMX HII NSIT NSP IPG ITT K KIM LITE MAS MDU MSGE NNN PATK PEP PM PDS RL SPGI SEE SSTK SWI TPR TTGT TU TPX TRI WMG WEX WTW
• Afternoon:  AYX BE BHF CBT CC NET ROAD OFC CRSR COUR CUZ DXCM DOCS EQR EXPE FLO G KN LGF.A LYFT MTD MHK MSI NWSA ONTO OSCR PYPL PECO PRO QLYS RBC REG SPSC STEP TEX MODG VTR VRSN YELL YELP

Friday (Feb 10)  

• Morning:  ENB ESNT FTS GPN IQV MGA COOP NWL PRLB SXT SPB SLVM WPC

Leon Cooperman: top 6 buys in the 4th quarter

Leon Cooperman, founder and chairman of the Omega Advisors family office, disclosed this week that his firm's top six buys for the fourth quarter of 2019 included new holdings in Ferro Corp. (NYSE:FOE) and Workday Inc. (NASDAQ:WDAY) as well as position boosts in four existing holdings: DuPont de Nemours Inc. (NYSE:DD), Energy Transfer LP (NYSE:ET), Diamondback Energy Inc. (NASDAQ:FANG) and Mr. Cooper Group Inc. (NASDAQ:COOP).

Cooperman, who previously worked at Goldman Sachs Group Inc. (NYSE:GS), converted his Omega hedge fund into a family office in 2018, citing in a letter that he did not wish to spend the rest of his life chasing the Standard & Poor's 500 Index benchmark. The fund chairman combines his macroeconomic views and fundamental valuation in his investing strategy, paying close attention to valuations.

As of quarter-end, Omega's $1.88 billion equity portfolio contains 60 stocks, with turnover of 9%. The top three sectors in terms of weight are financial services, energy and communication services, with weights of 24.07%, 17.85% and 11.73%.

Charts 6 months later: 

https://finviz.com/screener.ashx?v=211&ta=0&p=w&o=-change&t=ET,DD,FANG,WDAY,FOE,COOP

-=Corteva (CTVA) completes separation from DowDuPont (DWDP)

• Similarly, DuPont de Nemours, Inc. ("DuPont"), the premier innovation provider of value-added specialized solutions that transform industries and everyday life, announced its debut as an independent company following the successful separation of its Agriculture Division through the spin-off of Corteva, Inc. ("Corteva"). The company was formerly known as DowDuPont Inc. DuPont common stock begins regular way trading today on the New York Stock Exchange (NYSE) under the ticker symbol "DD."

DowDuPont (DWDP)

DowDuPont is a company formed after the merger of Dow Chemical and DuPont on August 31, 2017. Within 18 months the company will be split into three publicly-traded companies: agriculture, materials science, and specialty products.

• Founded: September 1, 2017
• Parent organization: Dow Chemical Company
• Predecessors: Dow Chemical Company (DOW), DuPont (DD)

-=DuPont (DD) reported Q1 earnings on Tue 26 Apr 2016 (b/o)

DuPont beats by $0.22, beats on revs; raises and guides FY16 EPS above consensus :

• Reports Q1 (Mar) earnings of $1.26 per share, $0.22 better than the Capital IQ Consensus of $1.04; revenues fell 19.3% year/year to $7.41 bln vs the $7.1 bln Capital IQ Consensus.
• Co issues upside guidance for FY16, sees EPS of $3.05-3.20 vs. $3.02 Capital IQ Consensus Estimate, up from prior guidance of $2.95-3.10 per share
  • The estimated negative currency impact for full year 2016 is now expected to be about $0.20 per share, versus a previously communicated estimate of $0.30 per share.
• In addition, the company's guidance includes higher corn planted area than previously forecast and a headwind from the impact of Pioneer's transition to an agency-based route-to-market approach in the southern US, which will shift some sales from 2016 to the first quarter of 2017.

=DuPont (DD) reported 4Q earnings on Tue 26 Jan 2016 (before open)

** charts before earnings **



** charts after earnings **

DuPont beats by $0.01, reports revs in-line; guides FY16 EPS below consensus :

• Reports Q4 (Dec) earnings of $0.27 per share, excluding non-recurring items,$0.01 better than the Capital IQ Consensus of $0.26; revenues fell 9.4% year/year to $5.3 bln vs the $5.31 bln Capital IQ Consensus. Excluding currency, sales declined 1 %. Currency negatively impacted sales by an additional 8 %. Segment pre-tax operating earnings of $553 million included $170 million, or $0.17 per share, of negative impact from currency.
  • Growth in Industrial Biosciences and Nutrition & Health was more than offset by declines in Agriculture, Performance Materials, Safety & Protection and Electronics & Communications.
• Co issues downside guidance for FY16, sees EPS of $2.95-3.10, excluding non-recurring items, vs. $3.13 Capital IQ Consensus, including an expected benefit of $0.64 per share from the 2016 global cost savings and restructuring plan.
  • Current difficult global economic conditions in agriculture and slower growth in emerging markets are expected to continue, challenging the co's sales growth in 2016. The increase in the expected benefit results from identification of additional savings that will be delivered from the existing plans, including previously announced employee reduction estimates. The benefit from the 2016 global cost savings and restructuring plan will be weighted toward 2H16 as specific actions continue to be implemented in the first and second quarters.
  • 2016 operating earnings also includes ~$0.30 per share of estimated negative currency impact due to the continued strengthening of the U.S. dollar, pressuring both the top and bottom line. A higher base tax rate, reflecting the expected geographic mix of earnings, is expected to negatively impact operating earnings by $0.05 - $0.10 per share. The currency impact is expected to be most significant in the first half of the year due to a further weakening of the U.S dollar. Given the seasonality of the co's operating earnings from Agriculture in the northern hemisphere, the company anticipates ~two-thirds of the expected currency impact to occur in 1H16.
• Merger with Dow (DOW) expected to close in 2H16.