Key Takeaways
- EMN shares surpassed Zacks Consensus Estimate for earnings in each of the last four quarters.
- EMN stock has gained 9.6% in the past year compared with the wider chemical industry 1.9% decline.
- The Zacks model predicts an earnings beat for Eastman Chemical for a fifth straight quarter.
Eastman Chemical Company EMN is scheduled to release fourth-quarter 2024 results after the closing bell on Jan. 30.
See the Zacks Earnings Calendar to stay ahead of market-making news.
EMN surpassed Zacks Consensus Estimate for earnings in each of the last four quarters. It delivered a trailing four-quarter earnings surprise of around 7.7% on average. EMN pulled off an earnings surprise of 6.1% 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 in the fourth quarter. Weak demand in certain markets is likely to have weighed on its performance.
EMN stock has gained 9.6% in the past year compared with the Zacks Chemicals Diversified industry’s 1.9% decline.
Image Source: Zacks Investment Research
Let’s see how things are shaping up for this announcement.
What Our Model Unveils for EMN Stock
Our proven model predicts an earnings beat for Eastman Chemical this time around. 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.
Earnings ESP: Earnings ESP for EMN is +0.10%. The Zacks Consensus Estimate for the fourth quarter is currently pegged at $1.58. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: EMN currently carries a Zacks Rank #3.
What Do EMN's Revenue Estimates Say?
The Zacks Consensus Estimate for sales for the to-be-reported quarter is currently pegged at $2,257 million, which implies a rise of around 2.3% from the year-ago reported number.
Our estimate for EMN’s Additives and Functional Products division’s revenues is pegged at $653.8 million, suggesting a rise of 2.2% year over year. The same for the Advanced Materials unit’s revenues is $724 million, indicating an increase of 2.7%.
Our estimate for the Chemical Intermediates segment’s revenues is pinned at $474.8 million, suggesting a year-over-year decline of 7.5%. The same for the Fiber segment stands at $366.8 million, indicating an increase of 6% year over year.
Factors at Play for EMN Stock
Eastman's cost-cutting initiatives are anticipated to have benefited the company in the December quarter. It is expected to have gained from its operational transformation efforts, which are likely to have resulted in lower operating costs. EMN is taking action to keep its manufacturing and administrative costs in control. Pricing initiatives and lower raw material and energy costs are also expected to have supported its bottom line in the fourth quarter.
Innovation and market development initiatives are also expected to have aided EMN’s sales volumes in the quarter to be reported. Eastman aims to increase new business revenues by utilizing its innovation-driven growth strategy. Its specialty portfolio is expected to have supported sales across key end markets.
EMN is exposed to headwinds from weak demand in specific markets. It is seeing soft demand in building & construction and cautious customer behavior in consumer durables and electronics. Demand in building & construction remains sluggish in most regions.
While Eastman Chemical is seeing an end of customer inventory de-stocking across most of its end markets, the same is expected to have continued in medical applications in the fourth quarter. Weaker demand in certain markets is likely to have adversely impacted its performance in the to-be-reported quarter.
Eastman Chemical Company Price and EPS Surprise
Eastman Chemical Company price-eps-surprise | Eastman Chemical Company Quote
Basic Materials Stocks That Warrant a Look
Here are some companies in the basic materials space you may want to consider as our model shows they too have the right combination of elements to post an earnings beat this quarter:
Methanex Corporation MEOH, slated to release earnings on Jan. 29, has an Earnings ESP of +29.28% and carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for MEOH’s earnings for the fourth quarter is currently pegged at 91 cents.
ATI Inc. ATI, slated to release earnings on Feb. 4, has an Earnings ESP of +3.91% and carries a Zacks Rank #3 at present.
The consensus mark for ATI’s fourth-quarter earnings is currently pegged at 60 cents.
Kinross Gold Corporation KGC, scheduled to release fourth-quarter earnings on Feb. 12, has an Earnings ESP of +36.76%.
The Zacks Consensus Estimate for Kinross Gold's earnings for the fourth quarter is currently pegged at 23 cents. KGC currently carries a Zacks Rank #3.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners UpATI Inc. (ATI) : Free Stock Analysis Report
Kinross Gold Corporation (KGC) : Free Stock Analysis Report
Methanex Corporation (MEOH) : Free Stock Analysis Report
Eastman Chemical Company (EMN) : Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
