Eastman(US:EMN) ZACKS·2025-04-22 13:46Core Viewpoint - Eastman Chemical Company (EMN) is expected to report first-quarter 2025 results on April 24, with a history of surpassing earnings estimates in the past four quarters, averaging an earnings surprise of approximately 11.7% [1][2] Revenue Estimates - The Zacks Consensus Estimate for EMN's revenues in the upcoming quarter is $2,320.1 million, reflecting a year-over-year increase of 0.4% [4] - Revenue estimates for EMN's divisions include: - Additives and Functional Products: $703.3 million, a decline of 0.1% year-over-year [4] - Advanced Materials: $763.7 million, an increase of 2.1% [4] - Chemical Intermediates: $533.5 million, a rise of 2% [5] - Fiber segment: $325 million, a decrease of 1.8% [5] Factors Influencing Performance - EMN's innovation-focused growth strategy and cost-reduction efforts are expected to support performance despite weak demand in certain markets [2][6] - The company anticipates increased volumes in specialty businesses, driven by innovation, particularly in sectors like consumer durables, building & construction, and transportation [6] - The Kingsport methanolysis facility is projected to contribute an additional $75–$100 million in EBITDA in 2025 compared to the previous year [7] - The Advanced Materials division is expected to add $50–$75 million in incremental EBITDA [9] - Cost management strategies are anticipated to lower operational expenses and improve profitability, contributing $50 million of earnings growth in 2025 [10] Market Challenges - EMN is facing headwinds from subdued demand in specific markets, particularly in the building & construction sector and cautious purchasing in consumer durables and electronics [11] - The automotive sector is also under pressure due to a decline in global vehicle production, impacting revenue performance [12] Earnings Prediction Model - The current model does not predict an earnings beat for EMN, with an Earnings ESP of -1.01% and a Zacks Rank of 4 (Sell) [13][14]