Eastman Chemical's Earnings: A Preview
On Thursday, January 28, Eastman Chemical (NYSE:EMN) will release its latest earnings report. Benzinga's report can help you figure out the ins and outs of the earnings release.
Net Income, Earnings, And Earnings Per Share
Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.
Earnings And Revenue
Eastman Chemical earnings will be near $1.5 per share on sales of $2.16 billion, according to analysts. Eastman Chemical EPS in the same period a year ago totaled $1.42. Revenue was $2.21 billion.
Why Analyst Estimates And Earnings Surprises Are Important
Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.
If the company were to post earnings in line with the consensus estimate when it reports Thursday, EPS would be up 5.63%. Sales would have fallen 2.04% from the same quarter last year. Here is how the company's reported EPS has stacked up against analyst estimates in the past:
EPS Estimate | 1.35 | 1.05 | 1.72 | 1.34 |
EPS Actual | 1.57 | 0.85 | 2.03 | 1.42 |
Revenue Estimate | 2.07 B | 1.83 B | 2.26 B | 2.21 B |
Revenue Actual | 2.12 B | 1.92 B | 2.24 B | 2.21 B |
Stock Performance
Over the last 52-week period, shares of Eastman Chemical are up 44.17%.
Do not be surprised to see the stock move on comments made during its conference call. Eastman Chemical is scheduled to hold the call at 08:00:00 ET and can be accessed here.
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