Yahoo Finance Eastman Chemical (EMN) to Report Q1 Earnings: What's in Store?
Eastman Chemical Company EMN is scheduled to release first-quarter 2023 results after the closing bell on Apr 27.
The company surpassed Zacks Consensus Estimate for earnings in two of the last four quarters while missing it twice. It delivered a trailing four-quarter negative earnings surprise of around 5.5% on average. It posted a negative earnings surprise of 29.4% in the last reported quarter.
Eastman is expected to have benefited from its cost-cutting and productivity measures, as well as its growth model, driven by innovation, despite facing challenges such as increased costs of raw materials, energy and logistics. The company is also likely to have faced headwinds from consumer de-stocking and unfavorable currency fluctuations.
The stock has plunged 25.7% in the past year compared with the industry’s fall of 4.5%.
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Zacks Model
Our proven model predicts an earnings beat for Eastman Chemical this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat.
Earnings Beat: Earnings ESP for Eastman Chemical is +1.68%. This is because the Most Accurate Estimate is currently pegged at $1.25 while the Zacks Consensus Estimate stands at $1.22. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Eastman Chemical currently carries a Zacks Rank #3.
What Do the Estimates Say?
The Zacks Consensus Estimate for sales for the to-be-reported quarter is currently pegged at $2,369 million, which implies a decline of 13% from the year-ago reported number.
The Zacks Consensus Estimate for EMN’s Additives and Functional Products division’s revenues is pegged at $717 million, suggesting a decline of 11% year over year. The consensus estimate for the Advanced Materials unit’s revenues is $726 million, indicating a decrease of 1.5%.
The Zacks Consensus Estimate for Eastman’s Chemical Intermediaries segment’s revenues is pegged at $566 million, suggesting a decline of 29.2%. The same for Fiber Segment stands at $273 million, indicating an increase of 28.2% year over year.
Some Factors to Note
Eastman Chemical’s first-quarter results will likely reflect growing new business revenues from its innovative growth model. Its performance for the first quarter is also expected to have benefited from its efforts to control costs, particularly from its operational transformation program. Also, the company’s inorganic growth strategies are likely to have contributed to its performance in the quarter to be reported.
However, a stronger U.S. dollar might have put a dent in the company’s performance in the first quarter. Higher input costs and higher seasonal energy costs are likely to get reflected in EMN’s results. Lingering impacts from customer inventory de-stocking, particularly in consumer durables, building & construction markets, are also expected to have weighed on the company’s performance in the first quarter.
Eastman Chemical Company Price and EPS Surprise
Eastman Chemical Company price-eps-surprise | Eastman Chemical Company Quote
Other Stocks That Warrant a Look
Here are some other companies in the basic materials space you may want to consider, as our model shows these too have the right combination of elements to post an earnings beat this quarter:
IAMGOLD Corporation IAG, slated to release earnings on May 11, has an Earnings ESP of +7.69% and carries a Zacks Rank #3. You can see the complete list of today’s Zacks Rank #1 stocks here.
The Zacks Consensus Estimate for earnings for IAG for the first quarter is pegged at a loss of 4 cents.
Freeport-McMoRan Inc. FCX, scheduled to release earnings on Apr 21, has an Earnings ESP of +4.19% and carries a Zacks Rank #3.
The consensus estimate for FCX’s earnings for the first quarter is currently pegged at 45 cents.
Agnico Eagle Mines Limited AEM, which is scheduled to release earnings on Apr 27, has an Earnings ESP of +18.47% and carries a Zacks Rank #3.
The consensus estimate for AEM’s earnings for the first quarter is currently pegged at 39 cents.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Freeport-McMoRan Inc. (FCX) : Free Stock Analysis Report
Eastman Chemical Company (EMN) : Free Stock Analysis Report
Agnico Eagle Mines Limited (AEM) : Free Stock Analysis Report
Iamgold Corporation (IAG) : Free Stock Analysis Report
