Eastman Chemical Company Down 4.85% To $87.32 After Earnings Miss

Friday, January 27, 2023 - Eastman Chemical Company (EMN) reported downside earnings and revenues today.

Eastman Chemical Company's earnings came in at an EPS of $0.89 per share, 29% lower than estimates for an EPS of $1.26 per share. The firm's earnings are down 51% since reporting $1.81 per share in the same period a year ago. Remember, earnings reported were on an adjusted basis, so they may not be comparable to prior reports and/or analyst estimates.

Analyst projections for Eastman Chemical Company revenue came in at a consensus of $2.4 billion. Fourth-Quarter revenues missed estimates for $2.4 billion by $67 million (3%). The company achieved negative 12% growth year-over-year compared to the firm's revenue of $2.7 billion from the year-ago quarter. The lower earnings growth relative to revenue signals Eastman Chemical Company has not been able to improve its profit margin.

The stock is down 4.85% to $87.32 after the report.

Eastman Chemical Company's profit margins took a hit as earnings fell at a faster pace than revenues.

Wall Street Analysts had an average rating of Buy on the stock prior to the report.

InvestorsObserver gives the stock a Bullish Sentiment score at the moment based on recent trading.

Prior to the report, InvestorsObserver gave the stock an overall score of 47. Meanwhile, the average Wall Street analyst rated the stock a Buy.

Established in 1920 to produce chemicals for Eastman Kodak, Eastman Chemical has grown into a global specialty chemicals company with manufacturing sites around the world. The company generates the majority of its sales outside of the United States, with a strong presence in Asian markets. During the past several years, Eastman has sold noncore businesses, choosing to focus on higher-margin specialty product offerings.