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Eastman Chemical (EMN) to Post Q2 Earnings: What's in Store?

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Eastman Chemical Company (EMN - Free Report) is set to release second-quarter 2021 results after the closing bell on Aug 2. The company’s earnings are likely to have benefited from cost-management actions. Higher demand across building & construction, automotive and consumer durables markets is expected to have driven performance in the quarter.

Eastman Chemical beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters, while missing the same once. The company has a trailing-four quarter earnings surprise of 2.5%, on average. The company posted an earnings surprise of 4.9% in the last reported quarter.

Shares of Eastman Chemical are up 48.3% in the past year compared with 35.4% rise of its industry.

Zacks Investment Research
Image Source: Zacks Investment Research

Let’s see how things are shaping up for this announcement.

Zacks Model

Our proven model conclusively predicts an earnings beat for Eastman Chemical this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat.

Earnings ESP: Earnings ESP for Eastman Chemical is +0.90%. The Zacks Consensus Estimate for second-quarter earnings is currently pegged at $2.32. 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. You can see the complete list of today’s Zacks #1 Rank stocks here.

What do the Estimates Say?

The Zacks Consensus Estimate for Eastman Chemical’s second-quarter revenues is currently pinned at $2,399 million, which indicates a 24.7% year-over-year increase.

Factors to Watch For

Benefits of cost actions are likely to get reflected in the company’s second-quarter performance. These cost actions include reduction of discretionary spending. Eastman reduced costs by around $150 million in 2020. These initiatives are also likely to have contributed to earnings per share in the June quarter. The company might have benefited from lower operating costs from its operational transformation program in the second quarter.

Eastman Chemical is expected to have gained from higher demand across building & construction, transportation and consumer durables markets. Continued strength in these markets is might have led sales volumes in the second quarter. The company is also expected to have gained from growth in new business revenues due to innovation.

However, demand weakness in certain markets might have affected the company’s sales volumes in the second quarter. Softness across end-markets including aviation and energy is likely to have persisted in the quarter amid the pandemic.

Moreover, the company is expected to have faced some headwinds from higher raw material prices in the second quarter. Higher costs of energy, inputs and logistics are likely to have put pressure on margins in the June quarter.

Eastman Chemical Company Price and EPS Surprise

 

Eastman Chemical Company Price and EPS Surprise

Eastman Chemical Company price-eps-surprise | Eastman Chemical Company Quote

 

Other Stocks That Warrant a Look

Here are some other companies in the basic materials space you may want to consider as our model shows that these also have the right combination of elements to post an earnings beat this time around.

AdvanSix Inc. (ASIX - Free Report) , scheduled to release earnings on Jul 30, has an Earnings ESP of +21.30% and a Zacks Rank #1.

LyondellBasell Industries N.V. (LYB - Free Report) , scheduled to release earnings on Jul 30, has an Earnings ESP of +6.99% and flaunts a Zacks Rank #1.

Westlake Chemical Company (WLK - Free Report) , scheduled to release earnings on Aug 3, has an Earnings ESP of +1.50% and flaunts a Zacks Rank #1.