Eastman Chemical to Post Q4 Earnings: What's in Store for the Stock?

Core Insights - Eastman Chemical Company (EMN) has consistently surpassed Zacks Consensus Estimate for earnings in the last four quarters, with an average earnings surprise of approximately 7.7% [3][4] - EMN stock has increased by 9.6% over the past year, contrasting with a 1.9% decline in the wider chemical industry [4] - The upcoming fourth-quarter results are anticipated to show continued earnings growth, supported by cost-cutting measures and innovation-driven strategies [4][10] Earnings Expectations - EMN is set to release its fourth-quarter 2024 results on January 30 [2] - The Zacks Consensus Estimate for EMN's earnings in the fourth quarter is currently $1.58, with an Earnings ESP of +0.10$2,257 million, reflecting a year-over-year increase of about 2.3% [8] Revenue Breakdown - The Additives and Functional Products division is expected to generate revenues of $653.8 million, indicating a 2.2$724 million, suggesting a 2.7% increase [8] - The Chemical Intermediates segment is projected to see revenues of $474.8 million, representing a year-over-year decline of 7.5$366.8 million, indicating a 6% year-over-year increase [9] Factors Influencing Performance - Cost-cutting initiatives and operational transformation efforts are anticipated to lower operating costs and enhance profitability [10] - Pricing strategies and reduced raw material and energy costs are expected to support EMN's bottom line in the fourth quarter [10] - Innovation and market development initiatives are likely to boost sales volumes, particularly in key end markets [11] Market Demand Challenges - EMN faces challenges from weak demand in specific markets, particularly in building & construction and consumer durables [12] - The company is experiencing soft demand in building & construction across most regions, which may adversely impact performance [12][13] - While customer inventory de-stocking is ending in most markets, it is expected to persist in medical applications during the fourth quarter [13]