Dow Inc. (NYSE:DOW) Quarterly Earnings Preview: A Closer Look at Financial Metrics and Investor Concerns

Dow Inc. (NYSE:DOW) is a leading materials science company that provides a wide range of products and solutions in sectors such as packaging, infrastructure, and consumer care. As Dow prepares to release its quarterly earnings on April 24, 2025, Wall Street anticipates an earnings per share (EPS) of -$0.02 and revenue of approximately $10.26 billion. This release is closely watched by investors and analysts alike.

The expected weak earnings are attributed to increased maintenance expenses and rising feedstock costs. These factors have led to a significant year-over-year decline of 103.6% in EPS, as highlighted by Wall Street analysts. Despite these challenges, Dow has implemented cost-cutting measures, offering some optimism for investors.

The company's revenue is projected to be $10.27 billion, a 4.6% decrease from the same quarter last year. A major concern for investors is the sustainability of Dow's high dividend yield, especially if a global recession prolongs the current downturn in the business cycle.

Despite these economic challenges, Dow's price-to-book ratio of 1.10 suggests it remains a viable long-term investment. The company's price-to-earnings (P/E) ratio is approximately 18.29, indicating the price investors are willing to pay for each dollar of earnings. Dow's financial metrics provide insight into its valuation and performance. The price-to-sales ratio of 0.48 suggests investors are paying 48 cents for every dollar of sales.

The enterprise value to sales ratio is 0.83, reflecting the company's valuation compared to its sales. Additionally, the enterprise value to operating cash flow ratio is 12.31, showing how the company's valuation compares to its cash flow from operations. The company's debt-to-equity ratio of 0.99 indicates a balanced use of debt relative to its equity, while a current ratio of 1.61 suggests a good level of liquidity to cover short-term liabilities.

With an earnings yield of 5.47%, Dow offers a return on investment based on its earnings, making it an attractive option for long-term investors despite the current challenges.