CortevaNYSE: CTVA

Corteva highlights its financial framework through 2027. The company approves a new $3-billion share repurchase authorization.

Corteva, Inc. (NYSE: CTVA) announced on November 19, 2024, that its Board of Directors has approved a new share repurchase program worth $3 billion. This program is effective right away, has no expiration date, and allows management to decide when to buy back shares. This move shows the company's commitment to careful investment of its capital.

Corteva presented its plans at the 2024 Investor Day in Indianapolis, focusing on how to provide value to shareholders while tackling three major global issues: food security due to a rising population and limited farmland, climate change causing severe weather and pest problems, and the shift from fossil fuels to biofuels. The company believes that innovation will be key to solving these challenges.

On November 18, 2024, Corteva Inc. announced a partnership with bp to create a joint venture focused on crop-based biofuel feedstocks. This collaboration aims to produce and supply these feedstocks to support the expected increase in demand for sustainable aviation fuel (SAF).

Corteva has revealed a groundbreaking non-GMO hybrid technology for wheat, which is a significant advancement for this essential crop. Unlike corn, which has greatly benefited from hybrid technology, wheat has faced challenges that have made it difficult to achieve consistent and cost-effective improvements in yield. This new system is expected to provide a strong foundation for future growth in wheat productivity.

This Industry Outlook article has featured Corteva, Dole, Adecoagro, and Calavo Growers.

I maintain a 'Buy' recommendation for Corteva, setting a target price of $68 per share due to expected improvements in profit margins and market recovery. Although Corteva's Q3 performance in Latin America was not strong, they are likely to see better margins in FY25 thanks to lower raw material costs and effective cost management. The management predicts a stable crop protection market for FY25, with major savings from reduced seed commodity prices and falling raw material costs.

Corteva, Inc. (CTVA) reported a quarterly loss of $0.49 per share, which is worse than the Zacks Consensus Estimate of a $0.31 loss. This is also a decline from the loss of $0.23 per share recorded a year earlier.

The performance for the third quarter and year-to-date shows improvements in seed pricing and ongoing advantages from controllable factors. The results for the third quarter and the full year of 2024 were influenced by the planted area and market conditions in Latin America. Looking ahead, the preliminary outlook for 2025 suggests strong growth in Operating EBITDA and an increase in profit margins.