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Eastman Chemical (EMN) Earnings & Sales Top Estimates in Q1
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Eastman Chemical Company (EMN - Free Report) logged profits of $274 million or $1.99 per share for the first quarter of 2021, up from the year-ago profit of $258 million or $1.89 per share.
Barring one-time items, earnings were $2.13 per share for the quarter, up from $2.03 in the year ago-quarter. Earnings topped the Zacks Consensus Estimate of $2.03.
Revenues rose around 8% year over year to $2,409 million in the quarter. It surpassed the Zacks Consensus Estimate of $2,335.6 million.
The company gained from its innovation-driven growth model, operational execution and cost-management actions in the reported quarter.
Eastman Chemical Company Price, Consensus and EPS Surprise
Revenues from the Additives and Functional Products division went up 6% year over year to $871 million for the reported quarter, aided by higher volumes and mix growth. The company saw more than 20% growth in coatings additives volumes and mix on higher demand in the transportation end market and strong demand in consumer durables markets.
Revenues from the Advanced Materials unit rose 16% year over year to $716 million. The increase can be attributed to higher volumes and mix growth. The company saw double-digit revenue growth across all businesses.
Chemical Intermediates sales increased 2% year over year to $605 million as higher selling prices were mostly offset by lower volumes and mix. Higher raw material and energy prices supported selling prices. Volumes fell due to outages at the Longview and Texas City sites due to winter storm Uri and the discontinuation of specific product lines at the company’s Singapore facility.
Fibers segment sales went up 2% year over year to $217 million on higher volumes and mix. Acetate tow sales volumes were stable in the quarter. Textiles products revenues increased on end-market recovery, innovation and market development efforts.
Financials
Eastman Chemical ended the quarter with cash and cash equivalents of $540 million, a roughly 21% year-over-year decline. Net debt at the end of the year was $4,984 million, down around 11% year over year.
Eastman Chemical generated cash from operating activities of $216 million and free cash flow of $125 million in the quarter.
The company also returned $134 million to its shareholders through dividends and share repurchases during the quarter.
Guidance
Eastman Chemical said that it is seeing continued momentum in the second quarter as it gains from innovation, strong market recovery and lower operating costs from its operations transformation program. It expects adjusted earnings per share of between $8.25 and $8.75 for 2021. It also anticipates free cash flow to approach $1.1 billion for the year.
Price Performance
Eastman Chemical’s shares have gained 92.7% over a year, outperforming the 65.3% rise of the industry it belongs to.
Zacks Rank & Key Picks
Eastman Chemical currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks worth considering in the basic materials space include Nucor Corporation (NUE - Free Report) , Dow Inc. (DOW - Free Report) and Impala Platinum Holdings Limited (IMPUY - Free Report) .
Nucor has a projected earnings growth rate of 228.4% for the current year. The company’s shares have rallied around 100% in a year. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Dow has a projected earnings growth rate of 261.5% for the current year. The company’s shares have shot up around 75% in a year. It currently sports a Zacks Rank #1.
Impala Platinum has an expected earnings growth rate of 197.6% for the current fiscal. The company’s shares have surged around 238% in the past year. It currently carries a Zacks Rank #1.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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Eastman Chemical (EMN) Earnings & Sales Top Estimates in Q1
Eastman Chemical Company (EMN - Free Report) logged profits of $274 million or $1.99 per share for the first quarter of 2021, up from the year-ago profit of $258 million or $1.89 per share.
Barring one-time items, earnings were $2.13 per share for the quarter, up from $2.03 in the year ago-quarter. Earnings topped the Zacks Consensus Estimate of $2.03.
Revenues rose around 8% year over year to $2,409 million in the quarter. It surpassed the Zacks Consensus Estimate of $2,335.6 million.
The company gained from its innovation-driven growth model, operational execution and cost-management actions in the reported quarter.
Eastman Chemical Company Price, Consensus and EPS Surprise
Eastman Chemical Company price-consensus-eps-surprise-chart | Eastman Chemical Company Quote
Segment Review
Revenues from the Additives and Functional Products division went up 6% year over year to $871 million for the reported quarter, aided by higher volumes and mix growth. The company saw more than 20% growth in coatings additives volumes and mix on higher demand in the transportation end market and strong demand in consumer durables markets.
Revenues from the Advanced Materials unit rose 16% year over year to $716 million. The increase can be attributed to higher volumes and mix growth. The company saw double-digit revenue growth across all businesses.
Chemical Intermediates sales increased 2% year over year to $605 million as higher selling prices were mostly offset by lower volumes and mix. Higher raw material and energy prices supported selling prices. Volumes fell due to outages at the Longview and Texas City sites due to winter storm Uri and the discontinuation of specific product lines at the company’s Singapore facility.
Fibers segment sales went up 2% year over year to $217 million on higher volumes and mix. Acetate tow sales volumes were stable in the quarter. Textiles products revenues increased on end-market recovery, innovation and market development efforts.
Financials
Eastman Chemical ended the quarter with cash and cash equivalents of $540 million, a roughly 21% year-over-year decline. Net debt at the end of the year was $4,984 million, down around 11% year over year.
Eastman Chemical generated cash from operating activities of $216 million and free cash flow of $125 million in the quarter.
The company also returned $134 million to its shareholders through dividends and share repurchases during the quarter.
Guidance
Eastman Chemical said that it is seeing continued momentum in the second quarter as it gains from innovation, strong market recovery and lower operating costs from its operations transformation program. It expects adjusted earnings per share of between $8.25 and $8.75 for 2021. It also anticipates free cash flow to approach $1.1 billion for the year.
Price Performance
Eastman Chemical’s shares have gained 92.7% over a year, outperforming the 65.3% rise of the industry it belongs to.
Zacks Rank & Key Picks
Eastman Chemical currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks worth considering in the basic materials space include Nucor Corporation (NUE - Free Report) , Dow Inc. (DOW - Free Report) and Impala Platinum Holdings Limited (IMPUY - Free Report) .
Nucor has a projected earnings growth rate of 228.4% for the current year. The company’s shares have rallied around 100% in a year. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Dow has a projected earnings growth rate of 261.5% for the current year. The company’s shares have shot up around 75% in a year. It currently sports a Zacks Rank #1.
Impala Platinum has an expected earnings growth rate of 197.6% for the current fiscal. The company’s shares have surged around 238% in the past year. It currently carries a Zacks Rank #1.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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