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Eastman Chemical (EMN) to Post Q1 Earnings: Factors at Play
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Eastman Chemical Company (EMN - Free Report) is set to release first-quarter 2022 results after the closing bell on Apr 28. Benefits of cost and productivity actions and innovation are likely to get reflected in the company’s first-quarter performance. However, it is likely to have faced challenges associated with supply-chain issues and higher raw material costs in the quarter.
Eastman Chemical beat the Zacks Consensus Estimate for earnings in two of the last four quarters while missed twice. The company has a trailing-four quarter earnings surprise of 1.6%, on average. The company posted a negative earnings surprise of 4.2% in the last reported quarter.
Shares of Eastman Chemical are down 7.9% in the past year with the industry’s 3.4% decline.
Image Source: Zacks Investment Research
Let’s see how things are shaping up for this announcement.
What do the Estimates Say?
The Zacks Consensus Estimate for Eastman Chemical’s first-quarter revenues is currently pinned at $2,509 million, which indicates a 4.1% year-over-year increase.
The Zacks Consensus Estimate for the Eastman Chemical’s Additives and Functional Products division revenues is pegged at $746 million, suggesting a 14.4% decline year over year. The consensus estimate for Advanced Materials unit’s revenues is $753 million, indicating an increase of 5.2% year over year.
The Zacks Consensus Estimate for the Chemical Intermediates segment’s revenues is pegged at $722 million, which indicates a 19.3% rise from the year-ago quarter’s levels. The same for the Fibers segment stands at $224 million, indicating a 3.2% year-over-year rise.
Factors to Watch For
The company’s first-quarter earnings are likely to have benefited from cost-management and price hike actions and revenues from innovation. It might have benefited from lower operating costs from its operational transformation program in the March quarter.
The company is also expected to have gained from generating new business revenues from innovation. It remains focused on growing new business revenues leveraging its innovation-driven growth model. Eastman Chemical is also likely to have benefited from strategic acquisitions and end-market recovery.
However, Eastman Chemical is expected to have faced headwinds from higher raw material, energy and distribution costs in some of its products in the March quarter. Headwinds associated with supply-chain disruptions and logistics issues are also likely to have impacted first-quarter performance. The semiconductor shortage is also expected to have affected demand in the automotive market.
Our proven model does not conclusively predict 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. But that’s not the case here.
Earnings ESP: Earnings ESP for Eastman Chemical is -4.66%. The Zacks Consensus Estimate for earnings for the first quarter is currently pegged at $2.17. 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.
Stocks That Warrant a Look
Here are some companies in the basic materials space you may want to consider as our model shows these have the right combination of elements to post an earnings beat this quarter:
The Zacks Consensus Estimate for Mosaic’s first-quarter earnings has been revised 14.6% upward over the past 60 days. The Zacks Consensus Estimate for MOS’s earnings for the quarter is currently pegged at $2.44.
Westlake Corporation (WLK - Free Report) , slated to release earnings on May 3, has an Earnings ESP of +17.03% and carries a Zacks Rank #1.
The Zacks Consensus Estimate for Westlake's first-quarter earnings has been revised 22.1% upward over the past 60 days. The consensus estimate for WLK’s earnings for the quarter is currently pegged at $4.53.
Methanex Corporation (MEOH - Free Report) , scheduled to release earnings on Apr 27, has an Earnings ESP of +6.70% and carries a Zacks Rank #3.
The Zacks Consensus Estimate for Methanex's first-quarter earnings has been revised 4.5% upward over the past 60 days. The consensus estimate for MEOH’s earnings for the quarter is currently pegged at $2.05.
Image: Bigstock
Eastman Chemical (EMN) to Post Q1 Earnings: Factors at Play
Eastman Chemical Company (EMN - Free Report) is set to release first-quarter 2022 results after the closing bell on Apr 28. Benefits of cost and productivity actions and innovation are likely to get reflected in the company’s first-quarter performance. However, it is likely to have faced challenges associated with supply-chain issues and higher raw material costs in the quarter.
Eastman Chemical beat the Zacks Consensus Estimate for earnings in two of the last four quarters while missed twice. The company has a trailing-four quarter earnings surprise of 1.6%, on average. The company posted a negative earnings surprise of 4.2% in the last reported quarter.
Shares of Eastman Chemical are down 7.9% in the past year with the industry’s 3.4% decline.
Image Source: Zacks Investment Research
Let’s see how things are shaping up for this announcement.
What do the Estimates Say?
The Zacks Consensus Estimate for Eastman Chemical’s first-quarter revenues is currently pinned at $2,509 million, which indicates a 4.1% year-over-year increase.
The Zacks Consensus Estimate for the Eastman Chemical’s Additives and Functional Products division revenues is pegged at $746 million, suggesting a 14.4% decline year over year. The consensus estimate for Advanced Materials unit’s revenues is $753 million, indicating an increase of 5.2% year over year.
The Zacks Consensus Estimate for the Chemical Intermediates segment’s revenues is pegged at $722 million, which indicates a 19.3% rise from the year-ago quarter’s levels. The same for the Fibers segment stands at $224 million, indicating a 3.2% year-over-year rise.
Factors to Watch For
The company’s first-quarter earnings are likely to have benefited from cost-management and price hike actions and revenues from innovation. It might have benefited from lower operating costs from its operational transformation program in the March quarter.
The company is also expected to have gained from generating new business revenues from innovation. It remains focused on growing new business revenues leveraging its innovation-driven growth model. Eastman Chemical is also likely to have benefited from strategic acquisitions and end-market recovery.
However, Eastman Chemical is expected to have faced headwinds from higher raw material, energy and distribution costs in some of its products in the March quarter. Headwinds associated with supply-chain disruptions and logistics issues are also likely to have impacted first-quarter performance. The semiconductor shortage is also expected to have affected demand in the automotive market.
Eastman Chemical Company Price and EPS Surprise
Eastman Chemical Company price-eps-surprise | Eastman Chemical Company Quote
Zacks Model
Our proven model does not conclusively predict 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. But that’s not the case here.
Earnings ESP: Earnings ESP for Eastman Chemical is -4.66%. The Zacks Consensus Estimate for earnings for the first quarter is currently pegged at $2.17. 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.
Stocks That Warrant a Look
Here are some companies in the basic materials space you may want to consider as our model shows these have the right combination of elements to post an earnings beat this quarter:
The Mosaic Company (MOS - Free Report) , scheduled to release earnings on May 2, has an Earnings ESP of +0.89% and carries a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Mosaic’s first-quarter earnings has been revised 14.6% upward over the past 60 days. The Zacks Consensus Estimate for MOS’s earnings for the quarter is currently pegged at $2.44.
Westlake Corporation (WLK - Free Report) , slated to release earnings on May 3, has an Earnings ESP of +17.03% and carries a Zacks Rank #1.
The Zacks Consensus Estimate for Westlake's first-quarter earnings has been revised 22.1% upward over the past 60 days. The consensus estimate for WLK’s earnings for the quarter is currently pegged at $4.53.
Methanex Corporation (MEOH - Free Report) , scheduled to release earnings on Apr 27, has an Earnings ESP of +6.70% and carries a Zacks Rank #3.
The Zacks Consensus Estimate for Methanex's first-quarter earnings has been revised 4.5% upward over the past 60 days. The consensus estimate for MEOH’s earnings for the quarter is currently pegged at $2.05.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.