Eastman Chemical Company EMN logged earnings (as reported) of $1.53 per share compared with $1.49 in the year-ago quarter. Barring one-time items, earnings were $2.26 per share, up from $1.47 in the year-ago quarter. It surpassed the Zacks Consensus Estimate of $2.13.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Revenues increased roughly 9% year over year to $2,464 million in the quarter. The figure beat the Zacks Consensus Estimate of $2,394.2 million. EMN saw higher sales volume in the reported quarter due to the end of customer inventory de-stocking across most major end markets.
Eastman Chemical Company Price, Consensus and EPS Surprise
Eastman Chemical Company price-consensus-eps-surprise-chart | Eastman Chemical Company Quote
EMN’s Segment Review
Sales from the Additives and Functional Products division rose 11% year over year to $744 million in the reported quarter. Sales were driven by increased sales volume/mix aided by the end of customer inventory de-stocking in key markets and heat transfer fluid project fulfillments. The figure was higher than our estimate of $698.8 million.
Sales from the Advanced Materials unit increased 5% year over year to $787 million in the reported quarter. Sales volume rose due to the end of customer inventory de-stocking in major markets and premium interlayer product growth in the automotive market. This increase was somewhat offset by decreased selling prices. The figure was higher than our estimate of $759.1 million.
Chemical Intermediates sales went up 13% year over year at $593 million. The end-of-customer inventory de-stocking was the primary factor driving higher sales volume and selling prices. The figure was higher than our estimate of $561 million.
Fibers segment sales increased 4% year over year to $336 million. Higher selling prices were driven by acetate tow price rises. Sales volume rose owing to the growth in textiles. The figure was lower than our estimate of $365.8 million.
Eastman Chemical’s Financials
In the reported quarter, cash provided by operating activities was $396 million. EMN returned $195 million to shareholders through share repurchases and dividends in the third quarter.
EMN’s Guidance
The company expects earnings per share for 2024 to be between $7.50 and $7.70. EMN expects operating cash flow to approach $1.3 billion in 2024.
Eastman anticipates normal seasonal volume declines across most of its end markets in the fourth quarter. It expects to continue to leverage its innovation-driven growth model to drive growth above its markets.
EMN Stock’s Price Performance
Eastman Chemical’s shares have risen 39.8% over a year compared with the Zacks Chemicals Diversified industry’s 6.2% rise.
Image Source: Zacks Investment Research
EMN’s Zacks Rank & Other Key Picks
EMN currently carries a Zacks Rank #4 (Sell).
Better-ranked stocks in the Basic Materials space are IAMGOLD Corporation IAG, DuPont de Nemours, Inc. DD and Alamos Gold Inc. AGI. While IAMGOLD carries a Zacks Rank #1 (Strong Buy), both DuPont and Alamos Gold carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
IAMGOLD is scheduled to release third-quarter results on Nov. 7. The Zacks Consensus Estimate for IAG’s third-quarter earnings is pegged at 11 cents. IAG beat the consensus estimate in each of the last four quarters with the average surprise being 200%. Its shares have shot up roughly 118% in the past year.
DuPont is slated to release third-quarter results on Nov. 5. The consensus estimate for DD’s third-quarter earnings is pegged at $1.03. The company's shares have rallied roughly 22% in the past year.
Alamos Gold is scheduled to release third-quarter results on Nov. 6. The Zacks Consensus Estimate for AGI’s third-quarter earnings is pegged at 22 cents. AGI has rallied around 57% in the past year.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners UpDuPont de Nemours, Inc. (DD) : Free Stock Analysis Report
Eastman Chemical Company (EMN) : Free Stock Analysis Report
Iamgold Corporation (IAG) : Free Stock Analysis Report
Alamos Gold Inc. (AGI) : Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
