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Eastman Chemical's (EMN) Q3 Earnings & Sales Top Estimates
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Eastman Chemical Company (EMN - Free Report) recorded a profit of $301 million or $2.46 per share in the third quarter of 2022, down from $351 million or $2.57 in the year-ago quarter.
Barring one-time items, earnings were $2.05 per share for the quarter, down from $2.46 in the year-ago quarter. Earnings surpassed the Zacks Consensus Estimate of $2.00.
Revenues were $2,709 million for the quarter, down roughly 0.4% year over year. The figure surpassed the Zacks Consensus Estimate of $2,567.2 million.
The company benefiting from actions to improve mix with innovative products and implement price hikes to offset cost inflation in raw material, energy, distribution in the reported quarter. Selling prices rose roughly $380 million in response to the cost inflation.
Eastman Chemical Company Price, Consensus and EPS Surprise
Revenues from the Additives and Functional Products division rose 12% year over year to $820 million for the reported quarter, aided by higher selling prices and increased sales volume/mix. Volumes were driven by favorable mix in aviation fluids end markets, partly masked by softer demand in the building and construction and industrial end markets.
Revenues from the Advanced Materials unit went up 15% year over year to $888 million in the previous-year quarter. The upside was driven by higher selling prices and increased volume/mix that offset the unfavorable foreign currency exchange impacts. Selling prices were driven by specialty plastics and advanced interlayers. Volumes/mix were supported by the improvement in the automotive market globally and a modest improvement in other markets.
Chemical Intermediates sales increased 3% year over year to $751 million, led by higher selling prices due to higher raw material, energy and distribution prices. Sales volume/mix was lower due to the slowdown in end-market demand, customer destocking, and planned and unplanned manufacturing maintenance.
Fibers segment sales went up 13% year over year to $250 million due to higher selling prices that more than offset lower volume/mix.
Financials
Eastman Chemical ended the quarter with cash and cash equivalents of $461 million, a roughly 35% year-over-year decline. Net debt at the end of the quarter was $4,604 million, a roughly 4% decline year over year.
Eastman Chemical generated cash from operating activities of $256 million in the reported quarter compared with $547 million a year ago. The company also returned $1,192 million to its shareholders through share repurchases and dividends during the first nine months 2022.
Guidance
Eastman Chemical stated that challenges to the global economy have increased including weakening demand, accelerated inventory destocking and the strong U.S. dollar. The company also sees sustained energy, raw material and distribution cost inflation to limit spread improvement in its specialty businesses.
The company expects adjusted earnings per share of $8.05-$8.35 for 2022. It also sees adjusted earnings per share of $1.10-$1.40 for the fourth quarter.
It also anticipates operating cash flow to be $1-$1.2 billion this year.
Price Performance
Eastman Chemical’s shares have declined 27.3% over a year, compared with a 10.8% fall of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Other Key Picks
Eastman Chemical currently carries a Zacks Rank #5 (Strong Sell).
Better-ranked stocks worth considering in the basic materials space include Albemarle Corporation (ALB - Free Report) , Sociedad Quimica y Minera de Chile S.A. (SQM - Free Report) and Ryerson Holding Corporation (RYI - Free Report) .
Albemarle, currently sporting a Zacks Rank #1 (Strong Buy), has a projected earnings growth rate of 430.7% for the current year. The Zacks Consensus Estimate for ALB's current-year earnings has been revised 5.8% upward in the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Albemarle’s earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 24.2%, on average. ALB has gained around 13% in a year.
Sociedad has a projected earnings growth rate of 530.7% for the current year. The Zacks Consensus Estimate for SQM’s current-year earnings has been revised 2.1% upward in the past 60 days.
Sociedad has a trailing four-quarter earnings surprise of roughly 27.2%. SQM has rallied roughly 76% in a year. The company currently carries a Zacks Rank #1.
Ryerson Holding, currently carrying a Zacks Rank #1, has an expected earnings growth rate of 74.2% for the current year. The consensus estimate for RYI's earnings for the current year has been revised 3.2% upward in the past 60 days.
Ryerson Holding’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 28.9%. RYI has gained around 29% over a year.
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Eastman Chemical's (EMN) Q3 Earnings & Sales Top Estimates
Eastman Chemical Company (EMN - Free Report) recorded a profit of $301 million or $2.46 per share in the third quarter of 2022, down from $351 million or $2.57 in the year-ago quarter.
Barring one-time items, earnings were $2.05 per share for the quarter, down from $2.46 in the year-ago quarter. Earnings surpassed the Zacks Consensus Estimate of $2.00.
Revenues were $2,709 million for the quarter, down roughly 0.4% year over year. The figure surpassed the Zacks Consensus Estimate of $2,567.2 million.
The company benefiting from actions to improve mix with innovative products and implement price hikes to offset cost inflation in raw material, energy, distribution in the reported quarter. Selling prices rose roughly $380 million in response to the cost inflation.
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 rose 12% year over year to $820 million for the reported quarter, aided by higher selling prices and increased sales volume/mix. Volumes were driven by favorable mix in aviation fluids end markets, partly masked by softer demand in the building and construction and industrial end markets.
Revenues from the Advanced Materials unit went up 15% year over year to $888 million in the previous-year quarter. The upside was driven by higher selling prices and increased volume/mix that offset the unfavorable foreign currency exchange impacts. Selling prices were driven by specialty plastics and advanced interlayers. Volumes/mix were supported by the improvement in the automotive market globally and a modest improvement in other markets.
Chemical Intermediates sales increased 3% year over year to $751 million, led by higher selling prices due to higher raw material, energy and distribution prices. Sales volume/mix was lower due to the slowdown in end-market demand, customer destocking, and planned and unplanned manufacturing maintenance.
Fibers segment sales went up 13% year over year to $250 million due to higher selling prices that more than offset lower volume/mix.
Financials
Eastman Chemical ended the quarter with cash and cash equivalents of $461 million, a roughly 35% year-over-year decline. Net debt at the end of the quarter was $4,604 million, a roughly 4% decline year over year.
Eastman Chemical generated cash from operating activities of $256 million in the reported quarter compared with $547 million a year ago. The company also returned $1,192 million to its shareholders through share repurchases and dividends during the first nine months 2022.
Guidance
Eastman Chemical stated that challenges to the global economy have increased including weakening demand, accelerated inventory destocking and the strong U.S. dollar. The company also sees sustained energy, raw material and distribution cost inflation to limit spread improvement in its specialty businesses.
The company expects adjusted earnings per share of $8.05-$8.35 for 2022. It also sees adjusted earnings per share of $1.10-$1.40 for the fourth quarter.
It also anticipates operating cash flow to be $1-$1.2 billion this year.
Price Performance
Eastman Chemical’s shares have declined 27.3% over a year, compared with a 10.8% fall of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Other Key Picks
Eastman Chemical currently carries a Zacks Rank #5 (Strong Sell).
Better-ranked stocks worth considering in the basic materials space include Albemarle Corporation (ALB - Free Report) , Sociedad Quimica y Minera de Chile S.A. (SQM - Free Report) and Ryerson Holding Corporation (RYI - Free Report) .
Albemarle, currently sporting a Zacks Rank #1 (Strong Buy), has a projected earnings growth rate of 430.7% for the current year. The Zacks Consensus Estimate for ALB's current-year earnings has been revised 5.8% upward in the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Albemarle’s earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 24.2%, on average. ALB has gained around 13% in a year.
Sociedad has a projected earnings growth rate of 530.7% for the current year. The Zacks Consensus Estimate for SQM’s current-year earnings has been revised 2.1% upward in the past 60 days.
Sociedad has a trailing four-quarter earnings surprise of roughly 27.2%. SQM has rallied roughly 76% in a year. The company currently carries a Zacks Rank #1.
Ryerson Holding, currently carrying a Zacks Rank #1, has an expected earnings growth rate of 74.2% for the current year. The consensus estimate for RYI's earnings for the current year has been revised 3.2% upward in the past 60 days.
Ryerson Holding’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 28.9%. RYI has gained around 29% over a year.