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Eastman Chemical (EMN) to Post Q1 Earnings: What's in Store?
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Eastman Chemical Company (EMN - Free Report) is set to release first-quarter 2021 results after the closing bell on Apr 29. The company’s earnings are likely to have benefited from cost-management actions. Moreover, improved demand from the coronavirus-led slowdown is expected to have aided its performance in the quarter.
Eastman Chemical beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters, while missing the same once. The company has a trailing-four quarter earnings surprise of 5.8%, on average.
Shares of Eastman Chemical are up 91.5% in the past year compared with a 68.5% rise of its industry.
Let’s see how things are shaping up for this announcement.
What do the Estimates Say?
The Zacks Consensus Estimate for Eastman Chemical’s first quarter revenues is currently pinned at $2,336 million, which indicates a 4.2% year-over-year increase.
Moreover, the Zacks Consensus Estimate for Eastman Chemical’s Additives and Functional Products division revenues is pegged at $874 million, suggesting 6.3% increase year over year. The consensus estimate for Advanced Materials unit’s revenues is at $684 million, indicating an increase of 11.2% year over year.
The Zacks Consensus Estimate for the Chemical Intermediates segment’s revenues is at $598 million, which indicates a 1% rise from the year-ago quarter’s levels. The same for the Fibers segment is pegged at $206 million, suggesting a 2.8% year-over-year decline.
Factors to Watch For
Benefits of cost actions are expected to get reflected in the company’s first-quarter results. These cost actions include reduction of discretionary spending. Notably, Eastman reduced costs by around $150 million in 2020. Its cost-cutting actions are also likely to have contributed to earnings per share in the March quarter.
Eastman Chemical is likely to have benefited from recovery across building & construction, automotive and consumer durables markets. Continued recovery in these markets is expected to have driven sales volumes in the first quarter. The company is also expected to have gained from growth in new business revenues due to innovation.
However, demand weakness in certain markets might have affected the company’s sales volumes in the first quarter. Softness across end-markets including aviation, energy and textiles is likely to have continued in the quarter amid the pandemic.
Moreover, the company is expected to have faced some headwinds from higher raw material prices in the first quarter. Higher costs of energy and logistics are likely to have put pressure on margins in the March quarter.
Our proven model does not conclusively predict 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. But that’s not the case here.
Earnings ESP: Earnings ESP for Eastman Chemical is -5.64%. The Zacks Consensus Estimate for first-quarter earnings is currently pegged at $1.91. 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.
Other Stocks That Warrant a Look
Here are some companies in the basic materials space you may want to consider as our model shows they have the right combination of elements to post an earnings beat this quarter:
AdvanSix Inc. (ASIX - Free Report) , scheduled to release earnings on Apr 30, has an Earnings ESP of +7.69% and sports a Zacks Rank #1.
CF Industries Holdings, Inc. (CF - Free Report) , scheduled to release earnings on May 5, has an Earnings ESP of +38.03% and carries a Zacks Rank #3.
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Eastman Chemical (EMN) to Post Q1 Earnings: What's in Store?
Eastman Chemical Company (EMN - Free Report) is set to release first-quarter 2021 results after the closing bell on Apr 29. The company’s earnings are likely to have benefited from cost-management actions. Moreover, improved demand from the coronavirus-led slowdown is expected to have aided its performance in the quarter.
Eastman Chemical beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters, while missing the same once. The company has a trailing-four quarter earnings surprise of 5.8%, on average.
Shares of Eastman Chemical are up 91.5% in the past year compared with a 68.5% rise of its industry.
Let’s see how things are shaping up for this announcement.
What do the Estimates Say?
The Zacks Consensus Estimate for Eastman Chemical’s first quarter revenues is currently pinned at $2,336 million, which indicates a 4.2% year-over-year increase.
Moreover, the Zacks Consensus Estimate for Eastman Chemical’s Additives and Functional Products division revenues is pegged at $874 million, suggesting 6.3% increase year over year. The consensus estimate for Advanced Materials unit’s revenues is at $684 million, indicating an increase of 11.2% year over year.
The Zacks Consensus Estimate for the Chemical Intermediates segment’s revenues is at $598 million, which indicates a 1% rise from the year-ago quarter’s levels. The same for the Fibers segment is pegged at $206 million, suggesting a 2.8% year-over-year decline.
Factors to Watch For
Benefits of cost actions are expected to get reflected in the company’s first-quarter results. These cost actions include reduction of discretionary spending. Notably, Eastman reduced costs by around $150 million in 2020. Its cost-cutting actions are also likely to have contributed to earnings per share in the March quarter.
Eastman Chemical is likely to have benefited from recovery across building & construction, automotive and consumer durables markets. Continued recovery in these markets is expected to have driven sales volumes in the first quarter. The company is also expected to have gained from growth in new business revenues due to innovation.
However, demand weakness in certain markets might have affected the company’s sales volumes in the first quarter. Softness across end-markets including aviation, energy and textiles is likely to have continued in the quarter amid the pandemic.
Moreover, the company is expected to have faced some headwinds from higher raw material prices in the first quarter. Higher costs of energy and logistics are likely to have put pressure on margins in the March quarter.
Eastman Chemical Company Price and EPS Surprise
Eastman Chemical Company price-eps-surprise | Eastman Chemical Company Quote
Zacks Model
Our proven model does not conclusively predict 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. But that’s not the case here.
Earnings ESP: Earnings ESP for Eastman Chemical is -5.64%. The Zacks Consensus Estimate for first-quarter earnings is currently pegged at $1.91. 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.
Other Stocks That Warrant a Look
Here are some companies in the basic materials space you may want to consider as our model shows they have the right combination of elements to post an earnings beat this quarter:
The Mosaic Company (MOS - Free Report) , scheduled to release earnings on May 3, has an Earnings ESP of +9.00% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
AdvanSix Inc. (ASIX - Free Report) , scheduled to release earnings on Apr 30, has an Earnings ESP of +7.69% and sports a Zacks Rank #1.
CF Industries Holdings, Inc. (CF - Free Report) , scheduled to release earnings on May 5, has an Earnings ESP of +38.03% and carries a Zacks Rank #3.
Zacks' Top Picks to Cash in on Artificial Intelligence
In 2021, this world-changing technology is projected to generate $327.5 billion in revenue. Now Shark Tank star and billionaire investor Mark Cuban says AI will create "the world's first trillionaires." Zacks' urgent special report reveals 3 AI picks investors need to know about today.
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