Eastman Chemical Company EMN logged fourth-quarter 2024 net income (as reported) of $330 million or $2.82 per share, an increase from the prior-year quarter’s profits of $310 million or $2.61. 

Adjusted earnings per share were $1.87, up from the year-ago quarter’s $1.31. Earnings surpassed the Zacks Consensus Estimate of $1.58 per share.

Revenues of $2,245 million fell short of the Zacks Consensus Estimate of $2,257 million. However, revenues increased roughly 1.7% on a year-over-year basis. This was driven by higher sales/volume mix and selling prices.

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Eastman Chemical Company Price, Consensus and EPS Surprise

Eastman Chemical Company price-consensus-eps-surprise-chart | Eastman Chemical Company Quote

EMN’s Segment Review

Sales from the Additives and Functional Products division rose 9% year over year to $696 million in the reported quarter. The metric was driven by increased sales volume/mix aided by the end destocking in the agriculture end market and higher demand for aviation fluids. The figure was higher than our estimate of $653.8 million.

Sales from the Advanced Materials unit increased 2% year over year to $720 million in the reported quarter. Sales volume/mix rose due to the lack of customer inventory destocking across key end markets and the creation of growth from innovation initiatives. This increase was partly offset by 3% lower selling prices. EBIT rose as favorable price-cost, increased sales volume/mix and better capacity utilization were somewhat offset by operating costs associated with Kingsport methanolysis. The figure was lower than our estimate of $724 million.

Chemical Intermediates sales went down 2% year over year to $503 million. Lower sales volume/mix, due to weak end market demand and lower spreads, offset the advantage drawn from improved capacity utilization. The figure was higher than our estimate of $474.8 million.

Fibers segment sales decreased 7% year over year to $321 million. Higher selling prices were driven by acetate tow price rises. Sales volume/mix was down due to customer inventory management. The figure was lower than our estimate of $366.8 million.

EMN’s FY24 Results

Net sales for 2024 were $9,382 million, up from $9,210 million in 2023. Earnings for the full year were $7.67 per share, rising from $7.49 in 2023.

EMN’s Financials

In 2024, EMN returned $679 million to its stockholders through dividends and share repurchases. 2024 saw a slight dip in cash flow from operating activities. The figure was approximately $1,287 million compared with the previous year’s $1,374. However, the fourth quarter saw $540 million as cash flow from operations, an increase from prior-year quarter’s $452 million.

EMN’s Outlook

EMN expects modest volume growth in its specialty businesses in 2025, leveraging innovation-driven growth model. The company's circular platform will drive innovation, with commitments of $75-$100 million in EBITDA growth in 2025. EMN plans to reduce structural costs to offset inflation while investing in growth and long-term value creation. The company expects 2025 EPS to be between $8 and $8.75 and cash from operations to be around $1.3 billion.

EMN Stock’s Price Performance

EMN stock has gained 9.2% in the past year against 1.3% decline of the industry.

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EMN's Zacks Rank & Key Picks

EMN currently carries a Zacks Rank #3 (Hold). 

Some better-ranked stocks in the Basic Materials space are Ingevity Corporation NGVT, ICL Group Ltd. ICL and Fortuna Mining Corp. FSM. While NGVT sports a Zacks Rank #1 (Strong Buy), ICL and FSM carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

NGVT is slated to report fourth-quarter results on Feb. 18. The Zacks Consensus Estimate for Ingevity’s fourth-quarter earnings is pegged at 12 cents per share. NGVT beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, with the average surprise being 95.4%. Its shares have gained 5.2% in the past year.

ICL is expected to report fourth-quarter results on Feb. 26. The Zacks Consensus Estimate for ICL Group’s fourth-quarter earnings is pegged at 6 cents per share. ICL beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 18.1%. Its shares have soared 30.1% in the past year.

FSM is expected to report fourth-quarter results on March 5. The Zacks Consensus Estimate for Fortuna’s fourth-quarter earnings is pegged at 16 cents per share. FSM surpassed the Zacks Consensus Estimate in two of the trailing four quarters while missing it in the rest, with an average surprise of 66.7%. The stock has gained 54.1% in the past year.





 

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