Free Post Earnings Research Report: Eastman Chemical’s Revenue Grew 8%; EPS Surged 42.3%

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LONDON, UK / ACCESSWIRE / November 30, 2017 / Active-Investors free earnings report on Eastman Chemical Co. (NYSE: EMN) has freshly been issued to its members, and you can also sign up to view this report at www.active-investors.com/registration-sg/?symbol=EMN. The Company posted its financial results on October 26, 2017, for the third quarter fiscal 2017. The chemical maker’s revenue and adjusted diluted EPS surpassed analysts’ expectations. Register today and get free access to our complimentary member’s area where many more reports are available:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Eastman Chemical most recent news is on our radar and we have decided to include it on our blog post. Today’s free coverage is available at:

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Earnings Highlights and Summary

For three months ended September 30, 2017, Eastman Chemical’s revenue increased 8% to $2.47 billion from $2.29 billion in Q3 FY16. Revenue surpassed analysts’ expectations of $2.39 billion.

During Q3 FY17, Eastman Chemical’s gross profit increased 11.3% to $691 million from $621 million in the same period last year. For the reported quarter, the Company’s gross margin increased 80 basis points to 28% of revenue from 27.2% of revenue in Q3 FY16

For the reported quarter, Eastman Chemical’s selling, general, and administrative (SG&A) expenses decreased 3.3% to $175 million from $181 million in Q3 FY16. During Q3 FY17, the Company’s research and development (R&D) expenses increased 3.7% to $56 million from $54 million in the same period last year.

During Q3 FY17, Eastman Chemical’s operating income increased 29.2% to $460 million from $356 million in the same period last year. During Q3 FY17, the Company’s operating margin increased 310 basis points to 18.7% of revenue, from 15.6% of revenue in the same period last year. During Q3 FY17, Eastman Chemical’s adjusted operating income increased 10.6% to $460 million from $416 million in the same period last year. For the reported quarter, the Company’s adjusted operating margin increased 50 basis points to 18.7% of revenue from 18.2% of revenue in Q3 FY16.

For the reported quarter, Eastman Chemical’s net income increased 39.2% to $323 million on a y-o-y basis from $232 million in Q3 FY16. During Q3 FY17, the Company’s diluted EPS increased 42.3% to $2.22 on a y-o-y basis from $1.56 in the same period last year. For the reported quarter, Eastman Chemical’s adjusted net income increased 16% to $319 million on a y-o-y basis from $275 million in Q3 FY16. During Q3 FY17, the Company’s adjusted diluted EPS increased 17.7% to $2.19 on a y-o-y basis from $1.86 in the same period last year. Adjusted diluted EPS surpassed analysts’ expectations of $2.03.

Eastman Chemical’s Segment Details

Addictive and Functional Products – During Q3 FY17, the Addictive and Functional Products segment’s revenue increased 18% to $886 million from $752 million in the same period last year. The increase was due to higher sales volume for most product lines. For the reported quarter, the segment’s operating income increased 16.3% to $186 million from $160 million in Q3 FY16.

Advanced Materials – During Q3 FY17, the Advanced Materials segment’s revenue increased 1% to $646 million from $638 million in the same period last year. The increase was due to improved product mix from higher sales volume of premium products. For the reported quarter, the segment’s operating income was $141 million, on par with the $141 million reported in Q3 FY16.

Chemical Intermediates – During Q3 FY17, the Chemical Intermediates segment’s revenue increased 9% to $696 million from $638 million in the same period last year. The increase was due to higher selling prices. For the reported quarter, the segment’s operating income increased 107.7% to $81 million from $39 million in Q3 FY16. The increase was due to higher selling prices, lower commodity hedge levels, and lower operating cost.

Fibers – During Q3 FY17, the Fibers segment’s revenue decreased 10% to $224 million from $248 million in the same period last year. The decrease was primarily due to lower selling prices, particularly for acetate tow, attributed to lower industry capacity utilization rates. For the reported quarter, the segment’s operating income decreased 16.5% to $66 million from $79 million in Q3 FY16.

Balance Sheet

As on September 30, 2017, Eastman Chemical’s cash and cash equivalents increased 7.7% to $195 million from $181 million on December 31, 2016. For the reported quarter, the Company’s net debt decreased 1.3% to $6.50 billion from $6.41 billion in Q4 FY16.

During FY17, the Company’s YTD cash provided by operating activities increased 1.6% to $1.01 billion from $995 million in the same period last year. During FY17, the Company’s YTD free cash flow decreased 7.6% to $573 million from $620 million in the same period last year.

Outlook

For FY17, the Company expects adjusted diluted EPS growth to be in the range of 10% to 12%.

Stock Performance Snapshot

November 29, 2017 – At Wednesday’s closing bell, Eastman Chemical’s stock was slightly down 0.31%, ending the trading session at $91.41.

Volume traded for the day: 840.50 thousand shares.

Stock performance in the last three-month – up 6.60%; previous six-month period – up 12.64%; past twelve-month period – up 24.05%; and year-to-date – up 21.54%

After yesterday’s close, Eastman Chemical’s market cap was at $13.10 billion.

Price to Earnings (P/E) ratio was at 13.27.

The stock has a dividend yield of 2.23%.

The stock is part of the Basic Materials sector, categorized under the Chemicals – Major Diversified industry.

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