Eastman Chemical (EMN) shares surged over 5% in after-hours trading on Thursday following the company's better-than-expected fourth quarter 2024 results and an optimistic outlook for 2025.

The specialty materials company reported Q4 adjusted earnings of $1.87 per share, beating analysts' estimates of $1.57 and marking a 42% increase from the prior year period. Revenue of $2.25 billion grew 2% year-over-year, though slightly missing consensus expectations.

Eastman cited higher sales volume/mix, especially in its Advanced Materials and Additives & Functional Products segments, as well as improved capacity utilization and favorable price-cost spreads as key drivers of its strong profit growth in Q4. For the full year 2024, adjusted EPS rose 23% to $7.89.

Looking ahead, Eastman expects earnings per share for 2025 to be in the range of $8.00 to $8.75, suggesting continued growth despite an uncertain macroeconomic environment. The company plans to leverage its innovation capabilities to drive modest volume growth in specialty businesses while reducing structural costs to offset inflationary pressures.