We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
The company surpassed Zacks Consensus Estimate for earnings in each of the last four quarters. It delivered a trailing four-quarter earnings surprise of around 9.9% on average. It pulled off an earnings surprise of 2.3% in the last reported quarter.
Eastman is expected to have benefited from cost-cutting and productivity initiatives, as well as its innovation-driven growth strategy. However, headwinds, including lower demand and customer de-stocking, are likely to have weighed on its first-quarter performance.
The stock has gained 18.1% in the past year compared with the industry’s fall of 8.9%.
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 sales for the to-be-reported quarter is currently pegged at $2,262.2 million, which implies a decline of 6.2% from the year-ago reported number.
Our estimates for EMN’s Additives and Functional Products division’s revenues is are pegged at $712.9 million, suggesting a fall of 8.2% year over year. The same for the Advanced Materials unit’s revenues is $690.1 million, indicating a fall of 7%.
Our estimates for Eastman’s Chemical Intermediates segment’s revenues is are pegged at $499.2 million, suggesting a decline of 15.3%. The same for the Fiber segment stands at $337.1 million, indicating an increase of 11.3% year over year.
Some Factors to Watch
Eastman's cost-cutting initiatives are anticipated to have benefited the company in the first quarter. The company is expecteds to have benefited gained from its operational transformation efforts, which are likely to have resulted in decreased operating costs.
EMN is taking steps to keep its manufacturing and administrative costs under control. It achieved cost savings of around $200 million in 2023, net of inflation. Pricing initiatives, as well as lower raw material and energy costs, are expected to have boosted the company's profits in the first quarter. Furthermore, Eastman's goal is to generate new business income through its innovation-driven growth approach. Its sales volumes are likely to have been supported by innovation and market development efforts.
The company is also projected to benefit from the revenues and earnings generated by its Kingsport methanolysis facility in 2024. The facility is expected to provide around $75 million in additional EBITDA growth this year.
However, lingering impacts from the customer inventory de-stocking in certain markets are likely to have a negative influence on company performance. EMN anticipates further de-stocking in medical and agriculture in the first quarter of 2024. De-stocking is likely to have had an impact on the company's volumes and top line in the quarter. Soft demand for building and construction materials, as well as consumer durables, is expected to have continued in the March 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 earning beat. But that’s not the case here.
Earnings ESP: Earnings ESP for Eastman Chemical is -2.77%. This is because the Most Accurate Estimate is pegged at $1.37 while the Zacks Consensus Estimate stands at $1.41. 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 #2.
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 mark for KGC’s first-quarter earnings is currently pegged at 5 cents.
Agnico Eagle Mines Limited (AEM - Free Report) , slated to release earnings on Apr 25, has an Earnings ESP of +4.91% and carries a Zacks Rank #3 at present.
The consensus mark for AEM’s first-quarter earnings is currently pegged at 58 cents.
Avient Corporation (AVNT - Free Report) , slated to release earnings on May 7, has an Earnings ESP of +1.16% and carries a Zacks Rank #2 at present.
The consensus mark for AVNT’s first -quarter earnings is currently pegged at 69 cents.
Image: Bigstock
Eastman Chemical (EMN) to Post Q1 Earnings: What's in Store?
Eastman Chemical Company (EMN - Free Report) is scheduled to release first-quarter 2024 results after the closing bell on Apr 25.
The company surpassed Zacks Consensus Estimate for earnings in each of the last four quarters. It delivered a trailing four-quarter earnings surprise of around 9.9% on average. It pulled off an earnings surprise of 2.3% in the last reported quarter.
Eastman is expected to have benefited from cost-cutting and productivity initiatives, as well as its innovation-driven growth strategy. However, headwinds, including lower demand and customer de-stocking, are likely to have weighed on its first-quarter performance.
The stock has gained 18.1% in the past year compared with the industry’s fall of 8.9%.
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 sales for the to-be-reported quarter is currently pegged at $2,262.2 million, which implies a decline of 6.2% from the year-ago reported number.
Our estimates for EMN’s Additives and Functional Products division’s revenues is are pegged at $712.9 million, suggesting a fall of 8.2% year over year. The same for the Advanced Materials unit’s revenues is $690.1 million, indicating a fall of 7%.
Our estimates for Eastman’s Chemical Intermediates segment’s revenues is are pegged at $499.2 million, suggesting a decline of 15.3%. The same for the Fiber segment stands at $337.1 million, indicating an increase of 11.3% year over year.
Some Factors to Watch
Eastman's cost-cutting initiatives are anticipated to have benefited the company in the first quarter. The company is expecteds to have benefited gained from its operational transformation efforts, which are likely to have resulted in decreased operating costs.
EMN is taking steps to keep its manufacturing and administrative costs under control. It achieved cost savings of around $200 million in 2023, net of inflation. Pricing initiatives, as well as lower raw material and energy costs, are expected to have boosted the company's profits in the first quarter. Furthermore, Eastman's goal is to generate new business income through its innovation-driven growth approach. Its sales volumes are likely to have been supported by innovation and market development efforts.
The company is also projected to benefit from the revenues and earnings generated by its Kingsport methanolysis facility in 2024. The facility is expected to provide around $75 million in additional EBITDA growth this year.
However, lingering impacts from the customer inventory de-stocking in certain markets are likely to have a negative influence on company performance. EMN anticipates further de-stocking in medical and agriculture in the first quarter of 2024. De-stocking is likely to have had an impact on the company's volumes and top line in the quarter. Soft demand for building and construction materials, as well as consumer durables, is expected to have continued in the March 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 earning beat. But that’s not the case here.
Earnings ESP: Earnings ESP for Eastman Chemical is -2.77%. This is because the Most Accurate Estimate is pegged at $1.37 while the Zacks Consensus Estimate stands at $1.41. 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 #2.
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:
Kinross Gold Corporation (KGC - Free Report) , slated to release earnings on May 7, has an Earnings ESP of +12.50% and carries a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus mark for KGC’s first-quarter earnings is currently pegged at 5 cents.
Agnico Eagle Mines Limited (AEM - Free Report) , slated to release earnings on Apr 25, has an Earnings ESP of +4.91% and carries a Zacks Rank #3 at present.
The consensus mark for AEM’s first-quarter earnings is currently pegged at 58 cents.
Avient Corporation (AVNT - Free Report) , slated to release earnings on May 7, has an Earnings ESP of +1.16% and carries a Zacks Rank #2 at present.
The consensus mark for AVNT’s first -quarter earnings is currently pegged at 69 cents.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.