Eastman Chemical Set to Report Q4 Earnings: Analysts Optimistic
Eastman Chemical Company (EMN), with a market capitalization of $10.3 billion, is an influential player in the specialty materials and chemical sector. Headquartered in Kingsport, Tennessee, the company produces a wide array of chemicals, plastics, and fibers that cater to diverse markets, including transportation, construction, agriculture, and electronics across the globe. Investors are awaiting the announcement of its fiscal Q4 earnings results, expected after the market closes on Thursday, Jan. 30.
Analysts predict that Eastman will report a profit of $1.58 per share, reflecting a 20.6% increase from $1.31 per share during the same quarter last year. Impressively, the company has outperformed Wall Street’s earnings expectations in each of its last four quarters, with the most recent report exceeding consensus estimates by 6.1%.
Looking ahead to fiscal 2024, experts forecast Eastman’s earnings per share (EPS) to rise to $7.61, marking an 18.9% increase from $6.40 in fiscal 2023. Projections for fiscal 2025 indicate expected EPS growth of 12.5%, reaching $8.56.
Over the last year, Eastman’s shares have risen by 5.8%, which is considerably lower than the S&P 500 Index’s ($SPX) growth of 22.1%. In contrast, EMN has outperformed the Materials Select Sector SPDR Fund (XLB), which reported a mere 3.3% increase during the same period.
A notable event occurred on Jan. 14, when Eastman Chemical’s shares surged over 2% following Bank of America Global Research’s upgrade of the stock’s rating from “Neutral” to “Buy,” along with a price target set at $109.
In contrast, the company’s third-quarter results released on Oct. 31 led to a more than 3% drop in share price during the subsequent trading session, despite both top and bottom line results exceeding market expectations.
Currently, the consensus rating for Eastman Chemical’s stock remains cautiously positive, earning a “Moderate Buy” overall. Among the 16 analysts covering EMN, there are six “Strong Buys,” one “Moderate Buy,” and nine “Holds.” The average price target set by analysts is $115.29, indicating a potential upside of 25.4% from current prices.
On the date of publication, Kritika Sarmah did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data are for informational purposes only. For more details, please view the Barchart Disclosure Policy here. More news from Barchart
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