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Can Eastman Chemical (EMN) Sustain Earnings Streak in Q3?
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Eastman Chemical Company (EMN - Free Report) is set to release third-quarter 2018 results after the closing bell on Oct 25.
Eastman Chemical saw its profits rise in the second quarter, supported by strong growth in its specialty businesses and cost management actions. Adjusted earnings of $2.22 per share for the quarter surpassed the Zacks Consensus Estimate of $2.20.
Revenues rose around 8% year over year to $2,621 million in the quarter on the back of higher sales volumes, also beating the Zacks Consensus Estimate of $2,606 million.
Eastman Chemical’s shares have lost around 11.9% over a year, compared with roughly 16.4% decline recorded by the industry.
Eastman Chemical topped the Zacks Consensus Estimate in each of the trailing four quarters with an average earnings beat of roughly 16.8%.
Is the company poised for another winning quarter? Let's see how things are shaping up for this announcement.
Earnings Whispers
Our proven model shows that Eastman Chemical is likely to beat on earnings estimates this quarter. This is because it has the right combination of two key ingredients, a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold).
Zacks ESP: Earnings ESP for Eastman Chemical is currently pegged at +0.57%. This is because the Most Accurate estimate stands at $2.31 while the Zacks Consensus Estimate is pegged at $2.29. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Eastman Chemical currently carries a Zacks Rank #3. The combination of a favorable Zacks Rank and a positive ESP makes us reasonably confident of an earnings beat.
Conversely, Sell-rated stocks (Zacks Rank #4 or 5) should never be considered going into an earnings announcement, especially when the company is seeing negative estimate revisions.
Factors to Watch For
Eastman Chemical continues to expect adjusted earnings per share growth for 2018 to be 10-14% year over year. Strong volume gains in specialty businesses and disciplined cost management helped it achieve strong earnings growth during the first half of 2018.
Revenues for Eastman Chemical for the third quarter is projected to rise roughly 2.8% year over year as the Zacks Consensus Estimate for the quarter is currently pegged at $2,535 million.
Revenues from Eastman Chemical’s Additives and Functional Products division is anticipated to witness a 1.5% rise year over year as the Zacks Consensus Estimate for the third quarter is pegged at $899 million.
Advanced Materials unit’s revenues are expected to increase 7% year over year as the Zacks Consensus Estimate for the third quarter is $691 million.
Revenues for the Chemical Intermediates segment are projected to fall 1% from the year-ago quarter as the Zacks Consensus Estimate for the third quarter stands at $689 million.
Moreover, the Fibers segment is expected to witness a 7% rise in revenues year over year as the Zacks Consensus Estimate is pegged at $240 million for the third quarter.
Eastman Chemical’s high margin products and its aggressive cost management actions are likely to continue to drive its earnings in the third quarter. The company should gain from sustained growth of its high margin specialty products.
Its focus on productivity and cost-cutting actions is also helping it to offset raw material cost inflation and other cost headwinds. Eastman Chemical expects to realize $100 million of cost savings in 2018, under its cost-reduction program.
Eastman Chemical should also gain from synergies of acquisitions, especially Taminco Corporation. The Taminco acquisition has provided attractive cost and revenue synergy opportunities.
However, Eastman Chemical is seeing a spike in raw material costs, which is anticipated to persist in the third quarter. It is also exposed to volatility in ethylene prices.
Nevertheless, the company’s productivity measures and actions to raise selling prices of products are likely to help offset the impact of these headwinds in the to-be-reported quarter.
Here are some companies in the basic materials space you may want to consider as our model shows they too have the right combination of elements to post an earnings beat this quarter:
The Mosaic Company (MOS - Free Report) has an Earnings ESP of +2.17% and carries a Zacks Rank #2.
FMC Corporation (FMC - Free Report) has an Earnings ESP of +1.09% and carries a Zacks Rank #3.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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Can Eastman Chemical (EMN) Sustain Earnings Streak in Q3?
Eastman Chemical Company (EMN - Free Report) is set to release third-quarter 2018 results after the closing bell on Oct 25.
Eastman Chemical saw its profits rise in the second quarter, supported by strong growth in its specialty businesses and cost management actions. Adjusted earnings of $2.22 per share for the quarter surpassed the Zacks Consensus Estimate of $2.20.
Revenues rose around 8% year over year to $2,621 million in the quarter on the back of higher sales volumes, also beating the Zacks Consensus Estimate of $2,606 million.
Eastman Chemical’s shares have lost around 11.9% over a year, compared with roughly 16.4% decline recorded by the industry.
Eastman Chemical topped the Zacks Consensus Estimate in each of the trailing four quarters with an average earnings beat of roughly 16.8%.
Is the company poised for another winning quarter? Let's see how things are shaping up for this announcement.
Earnings Whispers
Our proven model shows that Eastman Chemical is likely to beat on earnings estimates this quarter. This is because it has the right combination of two key ingredients, a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold).
Zacks ESP: Earnings ESP for Eastman Chemical is currently pegged at +0.57%. This is because the Most Accurate estimate stands at $2.31 while the Zacks Consensus Estimate is pegged at $2.29. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Eastman Chemical currently carries a Zacks Rank #3. The combination of a favorable Zacks Rank and a positive ESP makes us reasonably confident of an earnings beat.
Conversely, Sell-rated stocks (Zacks Rank #4 or 5) should never be considered going into an earnings announcement, especially when the company is seeing negative estimate revisions.
Factors to Watch For
Eastman Chemical continues to expect adjusted earnings per share growth for 2018 to be 10-14% year over year. Strong volume gains in specialty businesses and disciplined cost management helped it achieve strong earnings growth during the first half of 2018.
Revenues for Eastman Chemical for the third quarter is projected to rise roughly 2.8% year over year as the Zacks Consensus Estimate for the quarter is currently pegged at $2,535 million.
Revenues from Eastman Chemical’s Additives and Functional Products division is anticipated to witness a 1.5% rise year over year as the Zacks Consensus Estimate for the third quarter is pegged at $899 million.
Advanced Materials unit’s revenues are expected to increase 7% year over year as the Zacks Consensus Estimate for the third quarter is $691 million.
Revenues for the Chemical Intermediates segment are projected to fall 1% from the year-ago quarter as the Zacks Consensus Estimate for the third quarter stands at $689 million.
Moreover, the Fibers segment is expected to witness a 7% rise in revenues year over year as the Zacks Consensus Estimate is pegged at $240 million for the third quarter.
Eastman Chemical’s high margin products and its aggressive cost management actions are likely to continue to drive its earnings in the third quarter. The company should gain from sustained growth of its high margin specialty products.
Its focus on productivity and cost-cutting actions is also helping it to offset raw material cost inflation and other cost headwinds. Eastman Chemical expects to realize $100 million of cost savings in 2018, under its cost-reduction program.
Eastman Chemical should also gain from synergies of acquisitions, especially Taminco Corporation. The Taminco acquisition has provided attractive cost and revenue synergy opportunities.
However, Eastman Chemical is seeing a spike in raw material costs, which is anticipated to persist in the third quarter. It is also exposed to volatility in ethylene prices.
Nevertheless, the company’s productivity measures and actions to raise selling prices of products are likely to help offset the impact of these headwinds in the to-be-reported quarter.
Eastman Chemical Company Price and EPS Surprise
Eastman Chemical Company Price and EPS Surprise | Eastman Chemical Company Quote
Other Stocks to Consider
Here are some companies in the basic materials space you may want to consider as our model shows they too have the right combination of elements to post an earnings beat this quarter:
CF Industries Holdings, Inc. (CF - Free Report) has an Earnings ESP of +12.07% and carries a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Mosaic Company (MOS - Free Report) has an Earnings ESP of +2.17% and carries a Zacks Rank #2.
FMC Corporation (FMC - Free Report) has an Earnings ESP of +1.09% and carries a Zacks Rank #3.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>