- Eastman Chemical reported an adjusted EPS of $1.60 for Q2, falling short of the estimated $1.74.
- Sales revenue for the quarter was $2.29 billion, slightly below the expected $2.3 billion.
- The company’s adjusted operating income was $275 million, missing the projection of $293.8 million.
- Eastman anticipates generating approximately $1 billion in full-year operating cash flow, aided by a release of working capital.
- The Chemical Intermediates segment suffered a $20 million impact due to an unforeseen outage amid challenging conditions in commodity markets.
- There is growing customer caution attributed to a changing tariff landscape and weak demand.
- The company expects a volume decline influenced by trade disputes and typical seasonal variations.
- To navigate the uncertainty from heightened tariff levels and potential outcomes, Eastman is maintaining its strategy of offering quarterly adjusted EPS guidance.
- Investment analysts have issued 12 buy and 7 hold recommendations for Eastman Chemical, with no sell ratings.
Eastman Chemical Co on Smartkarma
Analyst coverage of Eastman Chemical Co on Smartkarma reveals positive sentiments from Baptista Research. In their report titled “Eastman Chemical Company: Growth in Specialty Plastics & Performance Films Segments Driving Our ‘Outperform’ Rating!”, the analysts highlight insights from Eastman’s first-quarter financial results for 2025. The report acknowledges positive operational performance but also notes challenges related to international trade dynamics, particularly with China. Notably, Eastman’s methanolysis program at Kingsport is progressing well.
In another report by Baptista Research titled “Eastman Chemical Company: How Are They Dealing With Rising Raw Material Costs & Other Key Challenges?”, analysts discuss Eastman Chemical Company’s resilience in the face of a challenging macroeconomic environment as shown in their fourth-quarter and full-year 2024 financial results. Despite mixed financial landscape considerations, Eastman has showcased a strong recovery in its Advanced Materials (AM) segment, indicating aspects of promising growth for investors to consider.
A look at Eastman Chemical Co Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 4 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Eastman Chemical Company, an international chemical company known for its wide range of products in coatings, adhesives, fibers, and plastics, is showing positive signs for long-term growth according to Smartkarma Smart Scores. With solid scores across various factors such as Value, Dividend, and Growth, the company seems well-positioned for the future. The high scores in Value and Dividend indicate strong fundamentals and potential for returns for investors, while the Growth score suggests promising prospects for expansion and development.
Although there are slightly lower scores in Resilience and Momentum, it is important to note that these factors can fluctuate over time and may not necessarily detract from the overall positive outlook for Eastman Chemical Co. Overall, the Smartkarma Smart Scores point towards a favorable long-term outlook for Eastman Chemical Co, making it a company worth watching for potential investment opportunities in the chemical industry.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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