Eastman Chemical Company EMN is set to unveil its fourth-quarter 2023 results after the closing bell on Feb 1.
In three of the last four quarters, the company exceeded the Zacks Consensus Estimate for earnings, with an average trailing four-quarter earnings surprise of approximately 1.9%. Notably, it delivered an earnings surprise of 1.4% in the last reported quarter.
Eastman’s performance is likely to have been impacted by lower demand and customer de-stocking amidst an industry-wide fall of 17.5% in the past year.
Zacks Model Predicts an Earnings Beat
Our proven model forecasts that Eastman Chemical is poised for an earnings beat with a positive Earnings ESP of +4.01% and a Zacks Rank #3.
What Do the Estimates Say?
The Zacks Consensus Estimate for sales for the fourth quarter is currently pegged at $2,166.7 million, representing an 8.7% decline from the year-ago reported number. Here’s a closer look at the estimated revenues for each of Eastman’s segments.
Factors to Watch
Cost-cutting measures and productivity initiatives are expected to have benefitted Eastman in the fourth quarter. However, the company’s performance might have been hindered by customer inventory de-stocking and lower demand in several end markets.
Stocks That Warrant a Look
Other companies in the basic materials space, such as Nutrien Ltd. NTR, Agnico Eagle Mines Limited AEM, and Kinross Gold Corporation KGC, are also set to release their earnings. These companies have demonstrated the potential for an earnings beat based on our model.
