The 10-second takeaway
For the quarter ended June 30 (Q2), Eastman Chemical missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted slightly and GAAP earnings per share contracted.
Gross margins increased, operating margins increased, and net margins dropped.
Eastman Chemical booked revenue of $1.85 billion. The eight analysts polled by S&P Capital IQ wanted to see sales of $1.94 billion on the same basis. GAAP reported sales were 1.7% lower than the prior-year quarter's $1.89 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.40. The 11 earnings estimates compiled by S&P Capital IQ predicted $1.30 per share. GAAP EPS of $1.27 for Q2 were 13% lower than the prior-year quarter's $1.46 per share. (The prior-year quarter included $0.01 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 26%, 140 basis points better than the prior-year quarter. Operating margin was 17.1%, 100 basis points better than the prior-year quarter. Net margin was 9.7%, 150 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $2.39 billion. On the bottom line, the average EPS estimate is $1.44.
Next year's average estimate for revenue is $8.47 billion. The average EPS estimate is $5.17.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 186 members rating the stock outperform and 25 members rating it underperform. Among 53 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 50 give Eastman Chemical a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Eastman Chemical is outperform, with an average price target of $58.63.
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