The 10-second takeaway
For the quarter ended March 31 (Q1), Eastman Chemical missed slightly on revenues and beat expectations on earnings per share.
Compared with the prior-year quarter, revenue grew and GAAP earnings per share dropped significantly.
Margins dropped across the board.
Eastman Chemical reported revenue of $1.82 billion. The seven analysts polled by S&P Capital IQ looked for a top line of $1.86 billion on the same basis. GAAP reported sales were 3.6% higher than the prior-year quarter's $1.76 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 $1.22. The nine earnings estimates compiled by S&P Capital IQ averaged $1.12 per share. GAAP EPS of $1.12 for Q1 were 26% lower than the prior-year quarter's $1.52 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 23.7%, 90 basis points worse than the prior-year quarter. Operating margin was 14.5%, 170 basis points worse than the prior-year quarter. Net margin was 8.7%, 380 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.99 billion. On the bottom line, the average EPS estimate is $1.37.
Next year's average estimate for revenue is $8.08 billion. The average EPS estimate is $5.01.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 181 members out of 207 rating the stock outperform, and 26 members rating it underperform. Among 53 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 49 give Eastman Chemical a green thumbs-up, and four 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 $57.06.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings. He is the co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.