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The company surpassed Zacks Consensus Estimate for earnings in two of the last four quarters while missing it twice. It delivered a trailing four-quarter earnings surprise of around 0.8% on average. It pulled off an earnings surprise of 2.5% in the last reported quarter.
Eastman Chemical is expected to have benefited from growing new business revenues in end markets resulting from its innovative-driven growth model. However, the company is likely to have faced headwinds from the weakening of the global economy, inventory de-stocking and strengthening of the U.S. dollar in the fourth quarter.
Shares of Eastman have lost 23.5% in the past year against the industry’s rise of 3.7%.
Image Source: Zacks Investment Research
What Do the Estimates Say?
The company expects adjusted earnings per share for the fourth quarter to be between $1.10 and $1.40. The Zacks Consensus Estimate for sales for the to-be-reported quarter is currently pegged at $2,295 million, which reflects a decline of 14.8% from the year-ago reported number.
The Zacks Consensus Estimate for EMN’s Additives and Functional Products division’s revenues is pegged at $557 million, suggesting a decline of 38.6% year over year. The consensus estimate for the Advanced Materials unit’s revenues is $671 million, indicating a decrease of 13.1% from the year-ago reported number.
The Zacks Consensus Estimate for Eastman’s Chemical Intermediaries segment’s revenues is pegged at $635 million, suggesting a decline of 18.3%. The same for Fiber Segment stands at $271 million, indicating an increase of 13.9% year over year.
Some Factors to Watch
Eastman Chemical’s quarterly results will likely reflect growing new business revenues from its innovative growth model. Its performance for the fourth quarter is also expected to have benefited from disciplined pricing actions to offset cost inflation in raw material, energy and distribution. Also, improvement in the automotive end market is expected to have aided EMN’s performance in the fourth quarter.
However, EMN’s results might reflect a few headwinds too. The strengthening of the U.S. dollar is expected to have put a dent in the company’s performance in the fourth quarter. Weakening demand, especially in Europe and China, is likely to get reflected in EMN’s results. Customer inventory de-stocking, particularly in consumer durables, building & construction markets, is expected to have weighed on the company’s performance in the fourth quarter.
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 Beat: Earnings ESP for Eastman Chemical is -7.31%. The Zacks Consensus Estimate for earnings for the fourth quarter is currently pegged at $1.26 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 #4 (Sell).
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 earnings for IAG for the fourth quarter is pegged at a loss of 2 cents.
Freeport-McMoRan Inc. (FCX - Free Report) , scheduled to release earnings on Jan 25, has an Earnings ESP of +6.96% and carries a Zacks Rank #2.
The Zacks Consensus Estimate for Freeport’s fourth-quarter earnings has been revised 8.1% upward in the past 60 days. The consensus estimate for FCX’s earnings for the quarter is currently pegged at 40 cents.
Nucor Corporation (NUE - Free Report) , scheduled to release earnings on Jan 26, has an Earnings ESP of +3.29% and carries a Zacks Rank #1.
The Zacks Consensus Estimate for NUE’s earnings for the fourth quarter is currently pegged at $4.18.
Image: Bigstock
Eastman Chemical (EMN) to Report Q4 Earnings: What's in Store?
Eastman Chemical Company (EMN - Free Report) is scheduled to release fourth-quarter 2022 results after the closing bell on Jan 26.
The company surpassed Zacks Consensus Estimate for earnings in two of the last four quarters while missing it twice. It delivered a trailing four-quarter earnings surprise of around 0.8% on average. It pulled off an earnings surprise of 2.5% in the last reported quarter.
Eastman Chemical is expected to have benefited from growing new business revenues in end markets resulting from its innovative-driven growth model. However, the company is likely to have faced headwinds from the weakening of the global economy, inventory de-stocking and strengthening of the U.S. dollar in the fourth quarter.
Shares of Eastman have lost 23.5% in the past year against the industry’s rise of 3.7%.
Image Source: Zacks Investment Research
What Do the Estimates Say?
The company expects adjusted earnings per share for the fourth quarter to be between $1.10 and $1.40.
The Zacks Consensus Estimate for sales for the to-be-reported quarter is currently pegged at $2,295 million, which reflects a decline of 14.8% from the year-ago reported number.
The Zacks Consensus Estimate for EMN’s Additives and Functional Products division’s revenues is pegged at $557 million, suggesting a decline of 38.6% year over year. The consensus estimate for the Advanced Materials unit’s revenues is $671 million, indicating a decrease of 13.1% from the year-ago reported number.
The Zacks Consensus Estimate for Eastman’s Chemical Intermediaries segment’s revenues is pegged at $635 million, suggesting a decline of 18.3%. The same for Fiber Segment stands at $271 million, indicating an increase of 13.9% year over year.
Some Factors to Watch
Eastman Chemical’s quarterly results will likely reflect growing new business revenues from its innovative growth model. Its performance for the fourth quarter is also expected to have benefited from disciplined pricing actions to offset cost inflation in raw material, energy and distribution. Also, improvement in the automotive end market is expected to have aided EMN’s performance in the fourth quarter.
However, EMN’s results might reflect a few headwinds too. The strengthening of the U.S. dollar is expected to have put a dent in the company’s performance in the fourth quarter. Weakening demand, especially in Europe and China, is likely to get reflected in EMN’s results. Customer inventory de-stocking, particularly in consumer durables, building & construction markets, is expected to have weighed on the company’s performance in the fourth quarter.
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 Beat: Earnings ESP for Eastman Chemical is -7.31%. The Zacks Consensus Estimate for earnings for the fourth quarter is currently pegged at $1.26 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 #4 (Sell).
Eastman Chemical Company Price and EPS Surprise
Eastman Chemical Company price-eps-surprise | Eastman Chemical Company Quote
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:
IAMGOLD Corporation (IAG - Free Report) , slated to release earnings on Feb 16, has an Earnings ESP of +14.28% and carries a Zacks Rank #2. You can see the complete list of today’s Zacks Rank #1 stocks here.
The Zacks Consensus Estimate for earnings for IAG for the fourth quarter is pegged at a loss of 2 cents.
Freeport-McMoRan Inc. (FCX - Free Report) , scheduled to release earnings on Jan 25, has an Earnings ESP of +6.96% and carries a Zacks Rank #2.
The Zacks Consensus Estimate for Freeport’s fourth-quarter earnings has been revised 8.1% upward in the past 60 days. The consensus estimate for FCX’s earnings for the quarter is currently pegged at 40 cents.
Nucor Corporation (NUE - Free Report) , scheduled to release earnings on Jan 26, has an Earnings ESP of +3.29% and carries a Zacks Rank #1.
The Zacks Consensus Estimate for NUE’s earnings for the fourth quarter is currently pegged at $4.18.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.