Eastman Chemical Company (EMN) reported first-quarter 2024 earnings of $1.39 per share, reflecting a rise of 24.1% from the year-ago quarter's figure of $1.12.EMN posted adjusted earnings of $1.61 per share, down 1.2% from the year-ago quarter figure of $1.63. It surpassed the Zacks Consensus Estimate of $1.41.The company’s revenues in the first quarter were $2,310 million, which beat the Zacks Consensus Estimate of $2,259.2 million. Sales decreased around 4.2% from $2,412 million reported in the prior-year ...

For the quarter ended March 2024, Eastman Chemical (EMN) reported revenue of $2.31 billion, down 4.2% over the same period last year. EPS came in at $1.61, compared to $1.63 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $2.26 billion, representing a surprise of +2.25%. The company delivered an EPS surprise of +14.18%, with the consensus EPS estimate being $1.41.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and h ...

[Corporate Overview](index=1&type=section&id=Corporate%20Overview) Eastman reported strong Q1 2024 sequential earnings growth, driven by completed inventory destocking and Kingsport methanolysis facility revenue, despite a slight sales decline | (In millions, except per share amounts) | 1Q2024 | 1Q2023 | | :--- | :--- | :--- | | Sales revenue | $2,310 | $2,412 | | EBIT | $263 | $246 | | Adjusted EBIT* | $274 | $283 | | Earnings per diluted share | $1.39 | $1.12 | | Adjusted earnings per diluted share* | $1.61 | $1.63 | | Net cash used in operating activities | $(16) | $(2) | - CEO Mark Costa highlighted that **inventory destocking is complete** across most key end markets, including consumer durables, building and construction, and personal care[4](index=4&type=chunk) - The company achieved on-spec production and revenue generation at its Kingsport methanolysis facility, which is expected to contribute approximately **$75 million of incremental EBITDA** in 2024 compared to 2023[4](index=4&type=chunk)[8](index=8&type=chunk) - The U.S. Department of Energy selected Eastman to receive up to **$375 million** for a second molecular recycling project in Longview, Texas[8](index=8&type=chunk) [Segment Performance](index=1&type=section&id=Segment%20Results%201Q%202024%20versus%201Q%202023) Q1 2024 segment performance was mixed, with Advanced Materials and Fibers growing, while Additives & Functional Products and Chemical Intermediates declined [Advanced Materials](index=1&type=section&id=Advanced%20Materials) Advanced Materials sales increased 1% to **$748 million** due to higher volume/mix, leading to increased EBIT from improved price-cost dynamics - Sales revenue increased **1%** due to **4%** higher sales volume/mix, partially offset by **3%** lower selling prices[5](index=5&type=chunk) - Volume growth was driven by reduced customer inventory destocking in specialty plastics for consumer durables, though partially offset by destocking in the medical end market[6](index=6&type=chunk) - EBIT increased, primarily due to improved price-cost and higher sales volume/mix[7](index=7&type=chunk) [Additives & Functional Products](index=2&type=section&id=Additives%20%26%20Functional%20Products) Additives & Functional Products sales decreased 9% to **$704 million** due to lower prices and volume, resulting in decreased EBIT from higher manufacturing costs - Sales revenue decreased **9%**, resulting from **8%** lower selling prices and **1%** lower sales volume/mix[9](index=9&type=chunk) - Lower selling prices were mainly due to cost-pass-through contracts, with volume/mix down as growth in coatings and care additives was offset by declines in specialty fluids and agriculture[10](index=10&type=chunk) - EBIT decreased due to lower sales volume/mix and higher manufacturing costs from planned maintenance shutdowns[11](index=11&type=chunk) [Fibers](index=2&type=section&id=Fibers) Fibers sales grew 9% to **$331 million** driven by higher volume/mix and prices, with EBIT increasing due to improved price-cost - Sales revenue increased **9%**, comprised of **7%** higher sales volume/mix and **2%** higher selling prices[11](index=11&type=chunk) - Volume/mix growth was primarily driven by a **double-digit percentage increase** in textiles, thanks to strong adoption of Naia™ sustainable textile products[12](index=12&type=chunk) - EBIT increased as a result of higher sales volume/mix and improved price-cost[13](index=13&type=chunk) [Chemical Intermediates](index=2&type=section&id=Chemical%20Intermediates) Chemical Intermediates sales decreased 11% to **$523 million** due to lower prices, partially offset by volume, resulting in decreased EBIT from lower spreads - Sales revenue decreased **11%**, driven by **13%** lower selling prices, partially offset by **2%** higher sales volume/mix[13](index=13&type=chunk) - Lower selling prices were a result of weak market conditions and lower variable costs, while sales volume/mix increased slightly due to growth in the plasticizers product line[14](index=14&type=chunk) - EBIT decreased due to lower spreads[15](index=15&type=chunk) [Cash Flow and 2024 Outlook](index=2&type=section&id=Cash%20Flow%20and%20Outlook) Eastman used **$16 million** in Q1 2024 operating cash and returned **$95 million** to shareholders, reaffirming 2024 adjusted EPS and cash from operations guidance [Cash Flow](index=2&type=section&id=Cash%20Flow) In Q1 2024, **$16 million** cash was used in operating activities, and **$95 million** was returned to stockholders via dividends, prioritizing organic growth and shareholder returns | Cash Flow Item | Amount (in millions) | | :--- | :--- | | Cash used in operating activities | $(16) | | Dividends paid to stockholders | $95 | [2024 Outlook](index=2&type=section&id=2024%20Outlook) Eastman maintains its full-year 2024 adjusted EPS outlook of **$7.25 to $8.00** and **$1.4 billion** cash from operations, anticipating benefits from innovation and Kingsport methanolysis | 2024 Full-Year Outlook | Value | | :--- | :--- | | Adjusted EPS | $7.25 - $8.00 | | Cash from Operations | Approx. $1.4 billion | - The company expects to benefit from its innovation-driven growth model and revenue from the Kingsport methanolysis facility, primarily in the second half of the year[17](index=17&type=chunk) [Financial Tables](index=5&type=section&id=Financial%20Tables) This section presents detailed Q1 2024 financial statements, including Statements of Earnings, sales breakdowns, GAAP to non-GAAP reconciliations, Cash Flows, and net debt [Table 1 – Statements of Earnings](index=6&type=section&id=Table%201%20%E2%80%93%20Statements%20of%20Earnings) In Q1 2024, Eastman reported sales of **$2,310 million**, a decrease from Q1 2023, while net earnings increased to **$165 million** (**$1.39 per diluted share**) | (Dollars in millions) | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Sales | $2,310 | $2,412 | | Gross profit | $532 | $529 | | Earnings before interest and taxes | $263 | $246 | | Net earnings attributable to Eastman | $165 | $134 | [Table 2 – Segment and Geographic Sales Information](index=7&type=section&id=Table%202%20%E2%80%93%20Segment%20and%20Geographic%20Sales%20Information) This section details sales performance, showing 5% sequential growth, a 4% year-over-year decline, and varied geographic performance with Asia Pacific growing [Table 2A – Segment Sales Information](index=7&type=section&id=Table%202A%20%E2%80%93%20Segment%20Sales%20Information) Q1 2024 total sales were **$2,310 million**, with Advanced Materials (**$748 million**) and Additives & Functional Products (**$704 million**) being the largest revenue segments | Sales by Segment (Dollars in millions) | Q1 2024 | Q1 2023 | Q4 2023 | | :--- | :--- | :--- | :--- | | Advanced Materials | $748 | $742 | $705 | | Additives & Functional Products | $704 | $777 | $640 | | Chemical Intermediates | $523 | $589 | $513 | | Fibers | $331 | $303 | $346 | | **Total Eastman Chemical Company** | **$2,310** | **$2,412** | **$2,207** | [Table 2B – Sales Revenue Change](index=8&type=section&id=Table%202B%20%E2%80%93%20Sales%20Revenue%20Change) Total company revenue decreased **4%** year-over-year due to price, while sequentially increasing **5%** from Q4 2023 driven by volume/mix Sales Revenue Change: Q1 2024 vs. Q1 2023 | Segment | Revenue % Change | Volume / Mix Effect | Price Effect | | :--- | :--- | :--- | :--- | | Advanced Materials | 1% | 4% | (3)% | | Additives & Functional Products | (9)% | (1)% | (8)% | | Chemical Intermediates | (11)% | 2% | (13)% | | Fibers | 9% | 7% | 2% | | **Total Company** | **(4)%** | **3%** | **(7)%** | Sales Revenue Change: Q1 2024 vs. Q4 2023 | Segment | Revenue % Change | Volume / Mix Effect | Price Effect | | :--- | :--- | :--- | :--- | | Advanced Materials | 6% | 6% | (1)% | | Additives & Functional Products | 10% | 8% | 1% | | Chemical Intermediates | 2% | 1% | 1% | | Fibers | (4)% | (7)% | 3% | | **Total Company** | **5%** | **4%** | 0% | [Table 2C – Sales by Customer Location](index=8&type=section&id=Table%202C%20%E2%80%93%20Sales%20by%20Customer%20Location) In Q1 2024, the United States and Canada were the largest market with **$969 million** in sales, while Asia Pacific sales grew year-over-year | Sales by Customer Location (Dollars in millions) | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | United States and Canada | $969 | $1,065 | | Europe, Middle East, and Africa | $659 | $709 | | Asia Pacific | $564 | $521 | | Latin America | $118 | $117 | | **Total Eastman Chemical Company** | **$2,310** | **$2,412** | [Table 3 – Non-GAAP EBIT Reconciliations and Margins](index=9&type=section&id=Table%203%20%E2%80%93%20Non-GAAP%20EBIT%20Reconciliations%20and%20Margins) This section reconciles GAAP to non-GAAP adjusted EBIT, showing Q1 2024 total company adjusted EBIT of **$274 million** with an **11.9%** margin, and Fibers achieving **35.3%** [Table 3A - Segment, Other, and Company Non-GAAP EBIT Reconciliations](index=9&type=section&id=Table%203A%20-%20Segment%2C%20Other%2C%20and%20Company%20Non-GAAP%20EBIT%20Reconciliations) Q1 2024 reported company EBIT of **$263 million** was adjusted by **$11 million** for impairments to reach a non-GAAP EBIT of **$274 million** | (Dollars in millions) | Q1 2024 GAAP EBIT | Adjustments | Q1 2024 Adjusted EBIT | | :--- | :--- | :--- | :--- | | **Total Company** | **$263** | **$11** | **$274** | [Table 3B - Segment Non-GAAP EBIT Margins](index=11&type=section&id=Table%203B%20-%20Segment%20Non-GAAP%20EBIT%20Margins) In Q1 2024, the Fibers segment achieved the highest adjusted EBIT margin at **35.3%**, a notable increase from Q1 2023, with total company margin at **11.9%** | Adjusted EBIT Margin | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Advanced Materials | 13.9% | 11.6% | | Additives & Functional Products | 15.5% | 16.0% | | Chemical Intermediates | 3.1% | 7.1% | | Fibers | 35.3% | 31.0% | | **Total Company** | **11.9%** | **11.7%** | [Table 4 – Non-GAAP Net Earnings and EPS Reconciliations](index=12&type=section&id=Table%204%20%E2%80%93%20Non-GAAP%20Net%20Earnings%20and%20EPS%20Reconciliations) This section reconciles GAAP to non-GAAP earnings, showing Q1 2024 adjusted EPS of **$1.61** (down from Q1 2023), with a forecasted full-year adjusted effective tax rate of **16%** [Table 4A – Non-GAAP Earnings Reconciliations](index=12&type=section&id=Table%204A%20%E2%80%93%20Non-GAAP%20Earnings%20Reconciliations) In Q1 2024, GAAP net earnings of **$165 million** (**$1.39/share**) were adjusted to non-GAAP net earnings of **$190 million** (**$1.61/share**) | (per diluted share) | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | As reported (GAAP) | $1.39 | $1.12 | | Non-GAAP (Adjusted) | $1.61 | $1.63 | [Table 4B - Adjusted Effective Tax Rate Calculation](index=13&type=section&id=Table%204B%20-%20Adjusted%20Effective%20Tax%20Rate%20Calculation) The Q1 2024 effective tax rate was **23%**, with the forecasted full-year adjusted effective tax rate remaining consistent at **16%** | Tax Rate | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Effective tax rate | 23% | 31% | | Forecasted full year adjusted effective tax rate | 16% | 16% | [Table 5 – Statements of Cash Flows](index=14&type=section&id=Table%205%20%E2%80%93%20Statements%20of%20Cash%20Flows) For Q1 2024, net cash used in operating activities was **$16 million**, with **$179 million** used in investing and **$148 million** provided by financing | (Dollars in millions) | First Three Months 2024 | First Three Months 2023 | | :--- | :--- | :--- | | Net cash used in operating activities | $(16) | $(2) | | Net cash used in investing activities | $(179) | $(252) | | Net cash provided by financing activities | $148 | $357 | | **Cash and cash equivalents at end of period** | **$499** | **$599** | [Table 6 – Total Borrowings to Net Debt Reconciliations](index=14&type=section&id=Table%206%20%E2%80%93%20Total%20Borrowings%20to%20Net%20Debt%20Reconciliations) As of March 31, 2024, Eastman's net debt increased to **$4,581 million** from year-end 2023, calculated from total borrowings of **$5,080 million** less **$499 million** in cash | (Dollars in millions) | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Total borrowings | $5,080 | $4,846 | | Less: Cash and cash equivalents | $499 | $548 | | **Net debt** | **$4,581** | **$4,298** |

Fahroni An essential characteristic of any diversified or actively managed portfolio is the presence of cyclical stocks at various points in market cycles. The structural volatility of the business cycles provides ample opportunity to generate a decent alpha. The following most desirable characteristics we look for in a cyclical stock are to ascertain the resilient nature of the business and management prudence to understand if the company has the right kind of foundations to withstand the cyclical head ...

Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. But when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments. Cash flow can come from bond interest, interest from other types of investments, and of course, dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a ...

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.It also includes access to the Zacks Style Scores.What are the Zacks Style Scores?The Zacks Style Sco ...

Eastman Chemical Company (EMN) is scheduled to release first-quarter 2024 results after the closing bell on Apr 25. The company surpassed Zacks Consensus Estimate for earnings in each of the last four quarters. It delivered a trailing four-quarter earnings surprise of around 9.9% on average. It pulled off an earnings surprise of 2.3% in the last reported quarter. Eastman is expected to have benefited from cost-cutting and productivity initiatives, as well as its innovation- driven growth strategy. However, ...

Wall Street analysts forecast that Eastman Chemical (EMN) will report quarterly earnings of $1.41 per share in its upcoming release, pointing to a year-over-year decline of 13.5%. It is anticipated that revenues will amount to $2.26 billion, exhibiting a decline of 6.3% compared to the year-ago quarter.Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted upward by 0.6% to its current level. This demonstrates the covering analysts' collective reassessment of their initial proje ...

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics a ...

Eastman Chemical Company (EMN) recently stated substantial progress toward leadership in the circular economy. The Department of Energy ("DOE") has selected it as one of 33 businesses to participate in award talks to support Eastman's second molecular recycling facility in the United States. The DOE has selected Eastman's second molecular recycling project in the United States to begin award discussions for up to $375 million in Bipartisan Infrastructure Law and Inflation Reduction Act financing through the ...