Eastman Chemical Company (EMN - Free Report) is slated to introduce its new sustainable fabric collection at the international fashion and textile exposition, Premiere Vision-Paris, which will be held from Sep 17-19.
Eastman Chemical is the maker of sustainably sourced Naia cellulosic yarn. The company offers feasible eco-conscious materials with Naia for sustainable fashion. The move is in alignment with the industry’s shift toward the circular economy.
The company launched Naia at Premiere Vision in 2018. Since then, it has continued to innovate by establishing two partnerships and creating a new collection of sustainable fabrics.
Notably, Naia is the Gold Sponsor of the world’s largest sustainable fashion design competition — 2019 Redress Design Award. At Premiere Vision, it will highlight garments created by finalists of the Redress competition.
Moreover, the company has entered into partnership with Milan-based eco-hub C.L.A.S.S. Naia has inherent luster and softness, which blend well with other eco-friendly yarns for creating unique and versatile fabrics.
Eastman Chemical also obtained FSC Mix-certification (FSC-C140711) for Naia cellulosic yarn, which is its latest product advancement in sustainable fibers.
The company’s shares have plunged 35.8% in the past year compared with 45% decline of the industry.
In second-quarter 2019, Eastman Chemical’s adjusted earnings per share (EPS) declined 10.4% year over year to $1.99. The figure also missed the Zacks Consensus Estimate of $2.09.
Revenues dropped around 10% year over year to $2,363 million in the quarter. The top line missed the Zacks Consensus Estimate of $2,539.5 million.
Sales in the Fibers segment dropped 12% to $213 million, owning to reduced acetate tow sales volumes stemming from softer market demand due to trade issues, customer buying patterns and general market decline.
Eastman Chemical stated that it does not expect underlying macroeconomic conditions to improve in the second half due to the challenging global business environment resulting from the trade conflict. However, it expects reduced customer inventory destocking.
The company also expects to gain from cost-reduction actions and the flow through of lower cost raw materials in the second half of 2019. Considering these factors, it expects adjusted EPS for 2019 in the range of $7.50-$8.00.
Zacks Rank & Key Picks
Eastman Chemical currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the basic materials space are Kinross Gold Corporation (KGC - Free Report) , Alamos Gold Inc (AGI - Free Report) and Arconic Inc (ARNC - Free Report) , all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Kinross has an expected earnings growth rate of 150% for 2019. The company’s shares have surged 72.3% in the past year.
Alamos Gold has projected earnings growth rate of 320% for the current year. The company’s shares have rallied 68.6% in a year’s time.
Arconic has an estimated earnings growth rate of 50% for the current year. Its shares have moved up 15.2% in the past year.
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