A groundbreaking achievement has been made in the world of chemical recycling with Eastman Chemical Company’s (EMN) molecular recycling facility starting production in Kingsport, TN. The company has not only met its initial production goals but has already begun generating revenues, signaling significant growth opportunities across various industries in the near future.
The plant’s successful launch has positioned Eastman to potentially garner around $75 million in additional EBITDA by the year 2024, a testament to the company’s commitment to innovation and sustainability.
By demonstrating large-scale molecular recycling, Eastman has solidified its role as a leader in fostering a circular economy. The demand for recycled materials of pristine quality from this new facility remains high, indicating a positive reception in the market.
Eastman’s innovative polyester renewal process tackles the recycling of challenging plastic waste that would otherwise pollute landfills or be incinerated. Through a sophisticated method, the company disassembles this waste into molecular building blocks, which are then reconstructed to create top-tier material without compromising performance.
Revolutionizing the utilization of resources, Eastman’s approach maintains these invaluable molecules in a high-yield loop of material-to-material production, allowing waste plastics to be transformed into food-grade polyesters of virgin quality while emitting fewer greenhouse gases compared to standard processes.
In addition to the successful facility in Kingsport, Eastman has plans to invest in two more molecular recycling plants, one in France and another in the United States, amplifying its impact on a global scale.
Despite market challenges, Eastman’s shares have surged by an impressive 20.3% over the past year, outperforming its industry peers.
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Anticipating a boost in volumes due to the cessation of client inventory destocking in various end markets, with the exceptions of medical and agriculture, Eastman projects a modest uptick in primary demand in several stable industries. The company foresees consistent performance in discretionary end markets and anticipates reaping benefits from the revenues and earnings emanating from its Kingsport methanolysis facility.
Combining these factors, Eastman estimates its 2024 earnings per share to fall within the range of $7.25 to $8.00, with an approximate cash flow from operations of $1.4 billion.
Eastman Chemical Company Price and Consensus
Eastman Chemical Company price-consensus-chart | Eastman Chemical Company Quote
Zacks Rank & Key Picks
Eastman currently holds a Zacks Rank #3 (Hold).
Within the basic materials sector, notable stocks worth considering include Denison Mines Corp. (DNN), Carpenter Technology Corporation (CRS), and Hawkins, Inc. (HWKN).
Denison Mines, with a Zacks Rank #1 (Strong Buy), has surpassed the Zacks Consensus Estimate in each of the last four quarters, boasting an average earnings surprise of 300%. The company’s shares have grown by a remarkable 96.9% in the past year. For a detailed list of today’s top Zacks #1 Rank stocks, click here.
Carpenter Technology is currently graded as a Zacks Rank #1, beating the Zacks Consensus Estimate in three out of the last four quarters and meeting it once, with an average earnings surprise of 12.2%. The company’s stock has surged by 64.8% over the past year.
Forecasts indicate a year-over-year earnings increase of 26.2% for Hawkins in its current fiscal year, with the Zacks Consensus Estimate per share standing at $3.61. Upward revisions in estimates over the past 30 days highlight the company’s positive trajectory. Hawkins, holding a Zacks Rank #2 (Buy), has beat the consensus estimate in every quarter over the last four, with an average earnings surprise of 30.6%. The stock has soared by approximately 77.5% in the past year.
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Carpenter Technology Corporation (CRS): Free Stock Analysis Report
Eastman Chemical Company (EMN): Free Stock Analysis Report
Denison Mine Corp (DNN): Free Stock Analysis Report
Hawkins, Inc. (HWKN): Free Stock Analysis Report
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