Eastman Chemical Increases Sales but Misses Estimates on Earnings
Eastman Chemical (NYS: EMN) reported earnings on Jan. 26. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Eastman Chemical beat expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly, and GAAP earnings per share expanded significantly.
Gross margins dropped, operating margins shrank, net margins expanded.
Eastman Chemical recorded revenue of $1.72 billion. The nine analysts polled by S&P Capital IQ expected a top line of $1.63 billion. Sales were 18% higher than the prior-year quarter's $1.46 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.71. The 12 earnings estimates compiled by S&P Capital IQ predicted $0.80 per share on the same basis. GAAP EPS of $1.16 for Q4 were 452% higher than the prior-year quarter's $0.13 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 18.8%, 520 basis points worse than the prior-year quarter. Operating margin was 9.5%, 330 basis points worse than the prior-year quarter. Net margin was 5.8%, 450 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.84 billion. On the bottom line, the average EPS estimate is $1.09.
Next year's average estimate for revenue is $7.51 billion. The average EPS estimate is $4.72.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 177 members out of 203 rating the stock outperform, and 26 members rating it underperform. Among 54 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 50 give Eastman Chemical a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Eastman Chemical is outperform, with an average price target of $48.09.
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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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