The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Eastman Chemical missed estimates on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share shrank to a loss.
Margins dropped across the board.
Eastman Chemical booked revenue of $2.17 billion. The 11 analysts polled by S&P Capital IQ hoped for sales of $2.25 billion on the same basis. GAAP reported sales were 26% higher than the prior-year quarter's $1.72 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 $1.19. The 15 earnings estimates compiled by S&P Capital IQ forecast $1.19 per share. GAAP EPS were -$0.35 for Q4 against $0.72 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 15.0%, 380 basis points worse than the prior-year quarter. Operating margin was 1.8%, 790 basis points worse than the prior-year quarter. Net margin was -2.5%, 830 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $2.41 billion. On the bottom line, the average EPS estimate is $1.53.
Next year's average estimate for revenue is $9.74 billion. The average EPS estimate is $6.32.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 188 members out of 214 rating the stock outperform, and 26 members rating it underperform. Among 67 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 62 give Eastman Chemical a green thumbs-up, and five 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 $70.06.
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