Corteva, Inc. (NYSE:CTVA) shares are trading lower after the company reported second-quarter 2024 revenue results.:
Net sales of $6.11 billion missed the consensus of $6.159 billion.
Revenue:
- North America rose by 2% Y/Y
- EMEA declined by 6% Y/Y
- Latin America increased by 7%
- Asia Pacific fell 4% Y/Y in the quarter.
Volumes stayed flat compared to the previous year, as growth in Crop Protection countered a decline in Seed volumes.
Crop Protection volumes rose by 6% Y/Y, primarily due to increased demand for new products and spinosyns in Latin America and North America.
Seed volume declined 2% Y/Y due to earlier seasonal deliveries in North America, partly offset by the delayed season in EMEA into second quarter.
Operating EBITDA for the second quarter was $1.92 billion, reflecting a 10% increase Y/Y and about 250 basis points of margin improvement. Adjusted EPS of $1.83 beat the consensus of $1.73.
"Corteva's results for the first half of 2024 were solid, led by the Seed business and overall operational execution," CEO Chuck Magro said. "Our Seed business segment had another standout performance, hitting a new record for first-half operating EBITDA. This reflects the sustained strength of our product portfolio, as farmers continue to rely on our leading technology."
"The Crop Protection market is showing signs of stabilization, however we continue to navigate competitive price pressures. We are encouraged by the Crop Protection business volume improvement in the second quarter and expect that to continue in the second half of the year."
The company plans to repurchase approximately $1 billion worth of shares in 2024.
Outlook: Corteva sees FY24 operating EPS of $2.60-$2.80 vs. consensus of $2.77 and revenue of $17.2 billion-$17.5 billion vs $17.37 billion estimate.
CFO Appointment: The company also announced the retirement of CFO Dave Anderson, who will transition to a Strategic Advisor role until his retirement in Q1 2025. David Johnson will join as the new Executive Vice President and CFO, effective Sept. 16, 2024.
Investors can gain exposure to the stock via Global X AgTech & Food Innovation ETF (NASDAQ:KROP) and iShares MSCI Agriculture Producers ETF (NYSE:VEGI).
Price Action: CTVA shares are down 2.25% at $54.84 premarket at the last check Thursday.
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