Eastman Chemical Earnings: Here’s Why Investors are Buying Shares Now

Eastman Chemical Co. (NYSE:EMN) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 3.04%.

Eastman Chemical Co. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 28.57% to $1.8 in the quarter versus EPS of $1.40 in the year-earlier quarter.

Revenue: Rose 31.68% to $2.44 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Eastman Chemical Co. reported adjusted EPS income of $1.8 per share. By that measure, the company beat the mean analyst estimate of $1.64. It beat the average revenue estimate of $2.39 billion.

Quoting Management: “The great progress we`ve made over the past several years to improve our portfolio, including the acquisition of Solutia, shows in the continuing strength of our earnings,” said Jim Rogers, Chairman and CEO. “Second-quarter earnings were our best ever and position us for a fourth consecutive year of double-digit earnings growth. We continue to expect double-digit earnings growth through 2015 given our leading market positions, our end-market and geographic diversity, and the growth initiatives we are pursuing throughout the company.”

Key Stats (on next page)…

Revenue increased 5.77% from $2.31 billion in the previous quarter. EPS increased 11.11% from $1.62 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $1.71 to a profit $1.66. For the current year, the average estimate has moved down from a profit of $6.41 to a profit of $6.34 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)