Eastman Chemical's Q4 Earnings Beat Estimates, Sales Lag

Core Viewpoint - Eastman Chemical Company (EMN) reported a strong fourth-quarter performance for 2024, with net income increasing to $330 million or$2.82 per share, surpassing the previous year's profits and the Zacks Consensus Estimate [1][7]. Financial Performance - Adjusted earnings per share rose to $1.87 from$1.31 year-over-year, exceeding the Zacks Consensus Estimate of $1.58 [1]. - Revenues for the quarter were$2,245 million, slightly below the Zacks Consensus Estimate of $2,257 million, but showed a year-over-year increase of approximately 1.7$696 million, driven by higher sales volume and demand in the agriculture and aviation sectors, exceeding estimates [3]. - Advanced Materials unit sales increased by 2% year-over-year to $720 million, supported by innovation initiatives, although offset by a 3$503 million, impacted by weak end market demand, but still exceeded estimates [5]. - Fibers segment sales fell by 7% year-over-year to $321 million, with higher selling prices not enough to offset lower sales volume [6]. Annual Results - For the full year 2024, net sales reached$9,382 million, up from $9,210 million in 2023, with earnings per share increasing to$7.67 from $7.49 [7]. Cash Flow and Shareholder Returns - In 2024, EMN returned$679 million to shareholders through dividends and share repurchases, with cash flow from operating activities slightly declining to approximately $1,287 million [8]. Future Outlook - EMN anticipates modest volume growth in specialty businesses for 2025, with a focus on innovation and a commitment of$75-$100 million in EBITDA growth [9]. - The company expects 2025 EPS to range between$8 and $8.75, with cash from operations projected at around$1.3 billion [9]. Stock Performance - EMN stock has gained 9.2% over the past year, outperforming the industry, which saw a decline of 1.3% [11].