U.S. Markets closed
  • S&P 500

    3,911.74
    +116.01 (+3.06%)
     
  • Dow 30

    31,500.68
    +823.32 (+2.68%)
     
  • Nasdaq

    11,607.62
    +375.43 (+3.34%)
     
  • Russell 2000

    1,765.74
    +54.06 (+3.16%)
     
  • Crude Oil

    107.06
    +2.79 (+2.68%)
     
  • Gold

    1,828.10
    -1.70 (-0.09%)
     
  • Silver

    21.13
    +0.09 (+0.42%)
     
  • EUR/USD

    1.0559
    +0.0034 (+0.3273%)
     
  • 10-Yr Bond

    3.1250
    +0.0570 (+1.86%)
     
  • Vix

    27.23
    -1.82 (-6.27%)
     
  • GBP/USD

    1.2274
    +0.0013 (+0.1056%)
     
  • USD/JPY

    135.1600
    +0.2270 (+0.1682%)
     
  • BTC-USD

    21,352.60
    +208.11 (+0.98%)
     
  • CMC Crypto 200

    462.12
    +8.22 (+1.81%)
     
  • FTSE 100

    7,208.81
    +188.36 (+2.68%)
     
  • Nikkei 225

    26,491.97
    +320.72 (+1.23%)
     

Eastman (EMN) Declares Share Buyback Worth $500 Million

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
·3 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

Eastman Chemical Company EMN recently entered into an accelerated share repurchase (“ASR”) agreement with Wells Fargo, NA and Mizuho Markets Americas LLC to buyback $500 million of Eastman’s common stock.

With the implementation of the ASR, Eastman will have repurchased roughly $750 million in the second quarter, progressing toward its target of repurchasing more than $1 billion of shares in 2022.

The ASR repurchases will be under the remainder of the February 2018 $2 billion share repurchase authorization and the December 2021 $2.5-billion share repurchase authorization. Upon executing of the ASR, Eastman will have the authorization to repurchase another around $2.12 billion of shares.

Eastman stated that this accelerated share repurchase reflects its confidence in its market value and commitment to continue delivering value to stockholders through share repurchases.

The ASR repurchases are anticipated to be completed by third-quarter 2022, with the total number of repurchased shares based on Eastman’s volume-weighted average price during the term of the agreement, less a discount.

Eastman Chemical’s shares have declined 18.3% in the past year compared with a 8% fall of the industry.

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

Eastman Chemical, in its last earnings call, envisions strong performance from the first quarter to continue for the balance of 2022. It remains on track with its pricing actions to offset inflation in 2022. It also anticipates its specialty product lines to continue to grow faster than end markets and drive additional mix improvement.

The company continues to expect adjusted earnings per share of $9.50-$10 for 2022. It also anticipates operating cash flow to reach $1.6 billion this 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 & Key Picks

Eastman Chemical currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the basic materials space are Nutrien Ltd. NTR, AdvanSix Inc. ASIX and Cabot Corporation CBT.

Nutrien has a projected earnings growth rate of 157.9% for the current year. The Zacks Consensus Estimate for NTR's current-year earnings has been revised 36.6% upward in the past 60 days.

Nutrien’s earnings beat the Zacks Consensus Estimate in three of the last four quarters, while missing once. It delivered a trailing four-quarter earnings surprise of roughly 5.9%, on average. NTR has rallied around 57.4% in a year and currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

AdvanSix has a projected earnings growth rate of 63.4% for the current year. The Zacks Consensus Estimate for ASIX’s current-year earnings has been revised 39.4% upward in the past 60 days.

AdvanSix’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, the average being 20.5%. ASIX has surged 51.2% in a year. The company flaunts a Zacks Rank #1.

Cabot, currently carrying a Zacks Rank #2 (Buy), has an expected earnings growth rate of 17.5% for the current year. The Zacks Consensus Estimate for CBT's earnings for the current year has been revised 1.7% upward in the past 60 days.

Cabot’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 16.2%. CBT has gained around 7.4% over a year.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Eastman Chemical Company (EMN) : Free Stock Analysis Report

Cabot Corporation (CBT) : Free Stock Analysis Report

AdvanSix (ASIX) : Free Stock Analysis Report

Nutrien Ltd. (NTR) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research