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Eastman Chemical's Earnings and Revenues Surpass Estimates in Q3
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Eastman Chemical Company (EMN - Free Report) logged earnings (as reported) of $1.53 per share compared with $1.49 in the year-ago quarter. Barring one-time items, earnings were $2.26 per share, up from $1.47 in the year-ago quarter. It surpassed the Zacks Consensus Estimate of $2.13.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Revenues increased roughly 9% year over year to $2,464 million in the quarter. The figure beat the Zacks Consensus Estimate of $2,394.2 million. EMN saw higher sales volume in the reported quarter due to the end of customer inventory de-stocking across most major end markets.
Eastman Chemical Company Price, Consensus and EPS Surprise
Sales from the Additives and Functional Products division rose 11% year over year to $744 million in the reported quarter. Sales were driven by increased sales volume/mix aided by the end of customer inventory de-stocking in key markets and heat transfer fluid project fulfillments. The figure was higher than our estimate of $698.8 million.
Sales from the Advanced Materials unit increased 5% year over year to $787 million in the reported quarter. Sales volume rose due to the end of customer inventory de-stocking in major markets and premium interlayer product growth in the automotive market. This increase was somewhat offset by decreased selling prices. The figure was higher than our estimate of $759.1 million.
Chemical Intermediates sales went up 13% year over year at $593 million. The end-of-customer inventory de-stocking was the primary factor driving higher sales volume and selling prices. The figure was higher than our estimate of $561 million.
Fibers segment sales increased 4% year over year to $336 million. Higher selling prices were driven by acetate tow price rises. Sales volume rose owing to the growth in textiles. The figure was lower than our estimate of $365.8 million.
Eastman Chemical’s Financials
In the reported quarter, cash provided by operating activities was $396 million. EMN returned $195 million to shareholders through share repurchases and dividends in the third quarter.
EMN’s Guidance
The company expects earnings per share for 2024 to be between $7.50 and $7.70. EMN expects operating cash flow to approach $1.3 billion in 2024.
Eastman anticipates normal seasonal volume declines across most of its end markets in the fourth quarter. It expects to continue to leverage its innovation-driven growth model to drive growth above its markets.
EMN Stock’s Price Performance
Eastman Chemical’s shares have risen 39.8% over a year compared with the Zacks Chemicals Diversified industry’s 6.2% rise.
IAMGOLD is scheduled to release third-quarter results on Nov. 7. The Zacks Consensus Estimate for IAG’s third-quarter earnings is pegged at 11 cents. IAG beat the consensus estimate in each of the last four quarters with the average surprise being 200%. Its shares have shot up roughly 118% in the past year.
DuPont is slated to release third-quarter results on Nov. 5. The consensus estimate for DD’s third-quarter earnings is pegged at $1.03. The company's shares have rallied roughly 22% in the past year.
Alamos Gold is scheduled to release third-quarter results on Nov. 6. The Zacks Consensus Estimate for AGI’s third-quarter earnings is pegged at 22 cents. AGI has rallied around 57% in the past year.
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Eastman Chemical's Earnings and Revenues Surpass Estimates in Q3
Eastman Chemical Company (EMN - Free Report) logged earnings (as reported) of $1.53 per share compared with $1.49 in the year-ago quarter. Barring one-time items, earnings were $2.26 per share, up from $1.47 in the year-ago quarter. It surpassed the Zacks Consensus Estimate of $2.13.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Revenues increased roughly 9% year over year to $2,464 million in the quarter. The figure beat the Zacks Consensus Estimate of $2,394.2 million. EMN saw higher sales volume in the reported quarter due to the end of customer inventory de-stocking across most major end markets.
Eastman Chemical Company Price, Consensus and EPS Surprise
Eastman Chemical Company price-consensus-eps-surprise-chart | Eastman Chemical Company Quote
EMN’s Segment Review
Sales from the Additives and Functional Products division rose 11% year over year to $744 million in the reported quarter. Sales were driven by increased sales volume/mix aided by the end of customer inventory de-stocking in key markets and heat transfer fluid project fulfillments. The figure was higher than our estimate of $698.8 million.
Sales from the Advanced Materials unit increased 5% year over year to $787 million in the reported quarter. Sales volume rose due to the end of customer inventory de-stocking in major markets and premium interlayer product growth in the automotive market. This increase was somewhat offset by decreased selling prices. The figure was higher than our estimate of $759.1 million.
Chemical Intermediates sales went up 13% year over year at $593 million. The end-of-customer inventory de-stocking was the primary factor driving higher sales volume and selling prices. The figure was higher than our estimate of $561 million.
Fibers segment sales increased 4% year over year to $336 million. Higher selling prices were driven by acetate tow price rises. Sales volume rose owing to the growth in textiles. The figure was lower than our estimate of $365.8 million.
Eastman Chemical’s Financials
In the reported quarter, cash provided by operating activities was $396 million. EMN returned $195 million to shareholders through share repurchases and dividends in the third quarter.
EMN’s Guidance
The company expects earnings per share for 2024 to be between $7.50 and $7.70. EMN expects operating cash flow to approach $1.3 billion in 2024.
Eastman anticipates normal seasonal volume declines across most of its end markets in the fourth quarter. It expects to continue to leverage its innovation-driven growth model to drive growth above its markets.
EMN Stock’s Price Performance
Eastman Chemical’s shares have risen 39.8% over a year compared with the Zacks Chemicals Diversified industry’s 6.2% rise.
Image Source: Zacks Investment Research
EMN’s Zacks Rank & Other Key Picks
EMN currently carries a Zacks Rank #4 (Sell).
Better-ranked stocks in the Basic Materials space are IAMGOLD Corporation (IAG - Free Report) , DuPont de Nemours, Inc. (DD - Free Report) and Alamos Gold Inc. (AGI - Free Report) . While IAMGOLD carries a Zacks Rank #1 (Strong Buy), both DuPont and Alamos Gold carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
IAMGOLD is scheduled to release third-quarter results on Nov. 7. The Zacks Consensus Estimate for IAG’s third-quarter earnings is pegged at 11 cents. IAG beat the consensus estimate in each of the last four quarters with the average surprise being 200%. Its shares have shot up roughly 118% in the past year.
DuPont is slated to release third-quarter results on Nov. 5. The consensus estimate for DD’s third-quarter earnings is pegged at $1.03. The company's shares have rallied roughly 22% in the past year.
Alamos Gold is scheduled to release third-quarter results on Nov. 6. The Zacks Consensus Estimate for AGI’s third-quarter earnings is pegged at 22 cents. AGI has rallied around 57% in the past year.