We’re buying 100 shares of DuPont at roughly $72. Following Tuesday’s trade, Jim Cramer’s Charitable Trust will own 1,625 shares of DD, increasing its weighting to 3.2% from 3.1%. We will be out with our full analysis of the quarter shortly; however, we wanted to get this to Club members as quickly as possible, as we don’t think the price action in DuPont reflects what we saw in the release and heard on the post-earnings conference call. DuPont reported a solid second quarter with sales and earnings outpacing expectations, thanks to strong profit margin expansion. Cash flow was also much better than expected. Equally important, the guide for the current (third) quarter was ahead of what the Street was looking for. Management also raised their full-year outlook. On the call, CEO Lori Koch said the dynamics that drove the strong second quarter continued into Q3. By business segment, ElectronicCo delivered 6% organic sales growth in the second quarter. An 8% increase in volume was only partially offset by a 2% decline in price. Meanwhile, IndustrialsCo reported 1% organic sales growth, with a 2% increase in volume partially offset by a 1% decline in price. DD YTD mountain DuPont YTD Regarding the separation of electronics, which will be known as Qnity, the company reaffirmed its Nov. 1 spin-off target date. The electronics business makes products that service the semiconductor industry, which has benefited from the AI trade. DuPont management will be hosting an Investor Day event on Sept. 18 to introduce Qnity and the new DuPont business. Given the strong quarterly results, a higher full-year outlook, and the upcoming break-up catalyst, we think the muted reaction in the stock represents a buying opportunity, and we are, therefore, taking advantage of it. (Jim Cramer’s Charitable Trust is long DD. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
