Fox Sports reports Dow Energy earnings beat analyst’s forecasts
Dow Energy stock is trading at a new all-time high, after beating analysts expectations and beating analysts’ estimates on Tuesday.
The Dow Jones Industrial Average DJIA, +0.35% reported earnings of $2.08 per share, beating Wall Street consensus estimates of $1.79 per share.
Analysts polled by FactSet had expected $1,979 per stock, the best gain of the year.
The company’s share price surged more than 60% in after-hours trading, to $62.27 on Tuesday, beating analysts estimates of a $2 per share gain.
The Dow Jones average has gained 21% in the past 12 months, beating its 2% average annual return of about 5%.
The company reported $1 billion in net income for the fourth quarter, a 7% increase from a year earlier.
It also reported revenue of $5.1 billion, a 19% increase over a year ago.
The dividend was paid out in August.
Dow Energy said its earnings would have been “stronger” if it had not sold a $1 trillion oil-and-gas assets that were bought by Chinese state-owned CNOOC.
Dell Energy stock, meanwhile, is up 1.7% to $50.50 on Tuesday and is trading above the $50 level for the first time in more than three years.
Drew Carey, a senior analyst with Guggenheim Securities, said the Dow’s gain comes despite falling energy prices.
“The Dow continues to dominate in the energy sector and the energy price has been very low for some time now, so we are confident the dividend is going to help push Dow’s shares higher,” he said.
The stock is up about 20% this year, but the market is still selling energy stocks.
Energy stocks are often down in recent weeks, as the market struggles with a sharp drop in energy prices and as energy companies are hit by tougher regulations in China.