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Eastman Chemical (EMN) Boosts Production Capacity of Naia Yarn

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Eastman Chemical Company EMN is expanding its production capacity of the Naia cellulosic filament yarn at its Barcelona facility. It plans to increase the production capacity by 30% by mid-2021 and more than 50% by the end of 2022.

The growing importance of a sustainable and circular production economy is resulting in the adoption of sustainable fibers. In this regard, Naia is rapidly picking up steam among customers.

The company envisions making sustainable fashion accessible to all and is hopeful that the committed team at Barcelona will make this possible. This expansion will also facilitate the adoption of Naia by new brands of womenswear fashion.

Shares of Eastman have grown 82.9% in a year compared with the industry’s rise of 59.3%. The estimated earnings growth rate for the company for the current year is pegged at 40.8%.

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Zacks Investment Research

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In the last reported quarter, the company recorded earnings of $2.13 per share, rising from $2.03 in the year-ago quarter and beating the Zacks Consensus Estimate of $2.03. It raked in net sales of $2,409 million, gaining 8% year over year and beating the Zacks Consensus Estimate of $2,335.6 million.

The company said that it is seeing continued momentum in the second quarter as it is gaining from innovation, strong market recovery and lower operating costs from its operations transformation program. It expects adjusted earnings per share between $8.25 and $8.75 for 2021. It also anticipates free cash flow to reach $1.1 billion for the year.

Eastman Chemical Company Price and Consensus

Eastman Chemical Company Price and Consensus
Eastman Chemical Company Price and Consensus

Eastman Chemical Company price-consensus-chart | Eastman Chemical Company Quote

Zacks Rank & Other Stocks to Consider

Currently, Eastman carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the basic materials space are Orion Engineered Carbons S.A OEC, Tronox Holdings PLC TROX and Univar Solutions Inc. UNVR, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Orion has a projected earnings growth rate of 61.5% for the current year. The company’s shares have grown 83.7% in a year.

Tronox has a projected earnings growth rate of 242.9% for the current year. The company’s shares have seen a surge of 235% in a year.

Univar has a projected earnings growth rate of 35.2% for the current year. The company’s shares have jumped 71.1% in a year.

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Eastman Chemical Company (EMN) : Free Stock Analysis Report

Orion Engineered Carbons S.A (OEC) : Free Stock Analysis Report

Tronox Holdings PLC (TROX) : Free Stock Analysis Report

Univar Solutions Inc. (UNVR) : Free Stock Analysis Report

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