Valued at a market cap of $12.9 billion, Eastman Chemical Company (EMN) operates in the specialty materials and chemical manufacturing industry. Based in Kingsport, Tennessee, it produces a diverse range of chemicals, plastics, and fibers, serving markets such as transportation, construction, agriculture, and electronics worldwide. The company is expected to announce its fiscal Q3 earnings results after the market closes on Thursday, Oct. 31.
Ahead of this event, analysts expect the specialty chemicals maker to report a profit of $2.12 per share, up 44.2% from $1.47 per share in the year-ago quarter. The company has surpassed Wall Street's bottom-line estimates in the last four quarterly reports. In the most recent quarter, the company exceeded the consensus estimate by an 8% margin.
For fiscal 2024, analysts expect EMN to report EPS of $7.66, up 19.7% from $6.40 in fiscal 2023. Looking forward to fiscal 2025, EPS is expected to grow 18.3% year-over-year to $9.06.
On a YTD basis, EMN increased 21.7%, outperforming both the S&P 500 Index's ($SPX) 19.4% rise and the Materials Select Sector SPDR Fund’s (XLB) 10.2% returns over the same time frame.
Despite reporting weaker-than-expected Q2 revenue of $2.4 billion on Jul. 25, Eastman Chemical's shares rose 3.7% the following day due to adjusted earnings of $2.15 per share, which surpassed analyst expectations. Investors reacted positively to the company's commentary on the end of inventory destocking, which indicated a potential recovery in demand, particularly in the durables and automotive markets. Additionally, the positive outlook provided by management, including guidance for a significant incremental EBITDA contribution from the Kingsport methanolysis facility, reassured investors about future profitability.
Analysts' consensus rating on Eastman Chemical stock is cautiously optimistic, with a "Moderate Buy" rating overall. Out of 16 analysts covering the stock, opinions include seven "Strong Buys," one "Moderate Buy," and eight "Holds." The average analyst price target for EMN is $111.94, suggesting a potential upside of only 2.4% from current levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
