Eastman Chemical Beats on EPS, but GAAP Results Lag
Eastman Chemical (NYS: EMN) reported earnings on April 26. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), Eastman Chemical missed slightly on revenues and beat expectations on earnings per share.
Compared with the prior-year quarter, revenue grew and GAAP earnings per share dropped significantly.
Margins dropped across the board.
Eastman Chemical reported revenue of $1.82 billion. The seven analysts polled by S&P Capital IQ looked for a top line of $1.86 billion on the same basis. GAAP reported sales were 3.6% higher than the prior-year quarter's $1.76 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.22. The nine earnings estimates compiled by S&P Capital IQ averaged $1.12 per share. GAAP EPS of $1.12 for Q1 were 26% lower than the prior-year quarter's $1.52 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 23.7%, 90 basis points worse than the prior-year quarter. Operating margin was 14.5%, 170 basis points worse than the prior-year quarter. Net margin was 8.7%, 380 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.99 billion. On the bottom line, the average EPS estimate is $1.37.
Next year's average estimate for revenue is $8.08 billion. The average EPS estimate is $5.01.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 181 members out of 207 rating the stock outperform, and 26 members rating it underperform. Among 53 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 49 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 $57.06.
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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. He is the 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 don't 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.