Eastman Chemical Company (EMN - Free Report) has completed its earlier announced Tritan copolyester expansion at its Kingsport, TN, manufacturing site which has now come online.
In addition to this, Eastman Chemical has announced an additional expansion of copolyester production at its Kingsport site that is expected to be completed by the third quarter of 2018. This will increase PETG and PCTG capacities by roughly 25% of the Kingsport specialty copolyester total capacity.
This move will enable the company to meet the increasing demand of specialty copolyester products globally and provide flexibility across the company’s polymer asset base.
Eastman Chemical’s shares have moved up 36.4% over the past year, outperforming the 9.3% gain of the industry it belongs to.
The company recorded profit of $290 million or $2.00 per share for the first quarter 2018, a roughly 4% rise from the year-ago figure of $278 million or $1.89. Adjusted earnings were $2.23 per share for the quarter, up from $1.83 in the year-ago quarter. Earnings surpassed the Zacks Consensus Estimate of $2.11.
Revenues rose around 13% year over year to $2,607 million in the quarter, also coming ahead of the Zacks Consensus Estimate of $2,461 million.
Eastman Chemical raised its earnings growth expectations for 2018 based on strong first-quarter results. The company now expects adjusted earnings per share growth for 2018 to be 10-14% year over year, up from its prior view of 8-12% growth. The company also remain committed to offset volatility in raw material and energy prices, especially olefins.
Eastman Chemical Company Price and Consensus
Zacks Rank & Stocks to Consider
Eastman Chemical currently carries a Zacks Rank #3 (Hold).
Some better-ranked companies in the basic materials space worth considering are FMC Corporation (FMC - Free Report) , Huntsman Corporation (HUN - Free Report) and Celanese Corporation (CE - Free Report) . All three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
FMC Corp has an expected long-term earnings growth rate of 11.3%. Its shares have gained around 16.6% over a year.
Huntsman has an expected long-term earnings growth rate of 8.3%. Its shares have moved up around 19.7% over a year.
Celanese has an expected long-term earnings growth rate of 8.9%. Its shares have gained around 26.2% over a year.
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