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Eastman Chemical (EMN) to Post Q3 Earnings: Factors at Play
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Eastman Chemical Company (EMN - Free Report) is set to release third-quarter 2022 results after the closing bell on Oct 27. Benefits of cost and productivity actions and innovation are likely to get reflected in the company’s performance. However, it is likely to have faced headwinds associated with raw material, energy and logistics costs in the third quarter.
Eastman Chemical missed the Zacks Consensus Estimate for earnings in three of the last four quarters while beat once. The company has a trailing-four quarter earnings surprise of 0.02%, on average. The company posted an earnings surprise of 5.2% in the last reported quarter.
Shares of Eastman Chemical are down 32% in the past year compared with the industry’s 14% 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 third-quarter revenues is currently pinned at $2,567 million, which indicates a 5.6% year-over-year decline.
The Zacks Consensus Estimate for the Eastman Chemical’s Additives and Functional Products division revenues is pegged at $721 million, suggesting a 27.7% decline year over year. The consensus estimate for Advanced Materials unit’s revenues is $844 million, indicating an increase of 14.8% year over year.
The Zacks Consensus Estimate for the Chemical Intermediates segment’s revenues is pegged at $801 million, which indicates a 9.6% rise from the year-ago quarter’s levels. The same for the Fibers segment stands at $228 million, indicating a 2.7% year-over-year rise.
Factors to Watch For
Eastman Chemical is likely to have benefited from cost-management and price hike actions and revenues from innovation in the quarter to be reported. It is expected to have gained from lower operating costs from its operational transformation program in the quarter.
The company is also expected to have gained from new business revenues from innovation in the third quarter. 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 healthy demand. The company is likely to have witnessed continued strong demand in major markets, including semiconductors, agriculture, personal care, and animal nutrition.
However, Eastman Chemical is expected to have faced headwinds from higher raw material, energy and distribution costs in some of its products in the third quarter. Headwinds associated with supply-chain disruptions and logistics issues are also likely to have impacted its 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 -0.28%. The Zacks Consensus Estimate for third-quarter earnings is currently pegged at $2.00. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Eastman Chemical carries a Zacks Rank #5 (Strong Sell).
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 consensus estimate for Albemarle’s third-quarter earnings has been revised 1% upward in the past 60 days. The Zacks Consensus Estimate for ALB’s earnings for the quarter is pegged at $6.84.
Koppers Holdings Inc. (KOP - Free Report) , slated to release earnings on Nov 4, has an Earnings ESP of +2.28% and carries a Zacks Rank #2.
The Zacks Consensus Estimate for Koppers’ third-quarter earnings has been revised 2.6% upward in the past 60 days. The consensus estimate for KOP’s earnings for the quarter is currently pegged at $1.17.
ATI Inc. (ATI - Free Report) , scheduled to release earnings on Nov 2, has an Earnings ESP of +7.86%.
The Zacks Consensus Estimate for ATI's earnings for the third quarter is currently pegged at 50 cents. ATI currently carries a Zacks Rank #3.
Image: Bigstock
Eastman Chemical (EMN) to Post Q3 Earnings: Factors at Play
Eastman Chemical Company (EMN - Free Report) is set to release third-quarter 2022 results after the closing bell on Oct 27. Benefits of cost and productivity actions and innovation are likely to get reflected in the company’s performance. However, it is likely to have faced headwinds associated with raw material, energy and logistics costs in the third quarter.
Eastman Chemical missed the Zacks Consensus Estimate for earnings in three of the last four quarters while beat once. The company has a trailing-four quarter earnings surprise of 0.02%, on average. The company posted an earnings surprise of 5.2% in the last reported quarter.
Shares of Eastman Chemical are down 32% in the past year compared with the industry’s 14% 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 third-quarter revenues is currently pinned at $2,567 million, which indicates a 5.6% year-over-year decline.
The Zacks Consensus Estimate for the Eastman Chemical’s Additives and Functional Products division revenues is pegged at $721 million, suggesting a 27.7% decline year over year. The consensus estimate for Advanced Materials unit’s revenues is $844 million, indicating an increase of 14.8% year over year.
The Zacks Consensus Estimate for the Chemical Intermediates segment’s revenues is pegged at $801 million, which indicates a 9.6% rise from the year-ago quarter’s levels. The same for the Fibers segment stands at $228 million, indicating a 2.7% year-over-year rise.
Factors to Watch For
Eastman Chemical is likely to have benefited from cost-management and price hike actions and revenues from innovation in the quarter to be reported. It is expected to have gained from lower operating costs from its operational transformation program in the quarter.
The company is also expected to have gained from new business revenues from innovation in the third quarter. 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 healthy demand. The company is likely to have witnessed continued strong demand in major markets, including semiconductors, agriculture, personal care, and animal nutrition.
However, Eastman Chemical is expected to have faced headwinds from higher raw material, energy and distribution costs in some of its products in the third quarter. Headwinds associated with supply-chain disruptions and logistics issues are also likely to have impacted its 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 -0.28%. The Zacks Consensus Estimate for third-quarter earnings is currently pegged at $2.00. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Eastman Chemical carries a Zacks Rank #5 (Strong Sell).
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:
Albemarle Corporation (ALB - Free Report) , scheduled to release earnings on Nov 2, has an Earnings ESP of +3.64% and sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for Albemarle’s third-quarter earnings has been revised 1% upward in the past 60 days. The Zacks Consensus Estimate for ALB’s earnings for the quarter is pegged at $6.84.
Koppers Holdings Inc. (KOP - Free Report) , slated to release earnings on Nov 4, has an Earnings ESP of +2.28% and carries a Zacks Rank #2.
The Zacks Consensus Estimate for Koppers’ third-quarter earnings has been revised 2.6% upward in the past 60 days. The consensus estimate for KOP’s earnings for the quarter is currently pegged at $1.17.
ATI Inc. (ATI - Free Report) , scheduled to release earnings on Nov 2, has an Earnings ESP of +7.86%.
The Zacks Consensus Estimate for ATI's earnings for the third quarter is currently pegged at 50 cents. ATI currently carries a Zacks Rank #3.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.