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LONDON, UK / ACCESSWIRE / May 17, 2018 / If you want access to our free earnings report on Eastman Chemical Co. (EMN) ("Eastman"), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=EMN. The Company reported its first quarter fiscal 2018 operating and financial results on April 26, 2018. The specialty chemicals maker outperformed top- and bottom-line expectations. The Company also provided guidance for the full fiscal year 2018. Register today and get access to over 1,000 Free Research Reports by joining our site below:
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Earnings Highlights and Summary
For the first quarter of the fiscal year 2018, Eastman recorded revenues of $2.61 billion, up 13% compared to $2.30 billion in the first quarter of the fiscal year 2017. The Company's revenue numbers beat analysts' estimates of $2.46 billion.
Eastman reported earnings of $290 million, or $2.00 per diluted share, in Q1 2018 versus $278 million, or $1.89 per diluted share, in Q1 2017. The Company's adjusted earnings surged 22% to $2.23 per diluted share in the reported quarter versus $1.83 per diluted share in the year earlier same quarter. Eastman's earnings beat Wall Street's estimates of $2.11 per share.
During Q1 2018, Eastman's Additives & Functional Products segment's sales jumped 21% to $939 million on a y-o-y basis, due to higher sales volume, higher selling prices, and a favorable shift in foreign currency exchange rates. The higher sales volume and higher selling prices for most product lines, particularly animal nutrition, care chemicals, and tire additives, were attributed to improved market conditions and an enhanced commercial execution. The segment's earnings before interest and taxes (EBIT) increased 15% to $176 million in the reported quarter, driven by higher sales volume, higher selling prices, and a favorable shift in foreign currency exchange rates.
For Q1 2018, Eastman's Advanced Materials segment's sales increased 9% to $693 million on a y-o-y basis, primarily due to an improved product mix from higher sales volume of premium products, including TritanTM copolyester, Saflex® head-up displays, Saflex® acoustic interlayers, and performance films; and also due to a favorable shift in foreign currency exchange rates. The segment's EBIT jumped 12% to $135 million in the reported quarter, due to higher sales volume, improved product mix, and a favorable shift in foreign currency exchange rates.
Eastman's Chemical Intermediates segment's sales totaled $730 million in Q1 2018, up 9% versus the year ago comparable period, due to higher selling prices across most product lines, attributed to higher raw material and energy prices, and a continued improvement in market conditions. The segment's EBIT fell 15% to $70 million in the reported quarter due to costs from the coal gasification incident.
During Q1 2018, Eastman's Fibers segment's sales rose 15% to $245 million on a y-o-y basis, primarily attributed to higher sales volume for acetate tow and acetate flake, resulting from the timing of recognition of revenue under the new revenue recognition accounting standard, and sales revenue in the reported quarter from textiles and nonwovens innovation platform products previously reported in the "Other" section. The segment's EBIT declined 17% to $43 million on a y-o-y basis in the reported quarter, due to costs from the coal gasification incident.
Eastman used cash for operating activities of $35 million during Q1 2018, as strong earnings were partially offset by a normal seasonal increase in working capital. The Company's net cash used for coal gasification operations repair and restart was approximately $75 million in the reported quarter. The Company's share repurchases totaled $100 million during the reported quarter.
Eastman raised its expectations for a growth in adjusted earnings per share (EPS) to be between 10% - 14% for FY18. The Company continues to expect to generate a free cash flow of greater than $1.1 billion. Priorities for uses of available cash include payment of the quarterly dividend, repayment of debt, funding targeted growth initiatives, and repurchasing shares.
Stock Performance Snapshot
May 16, 2018 - At Wednesday's closing bell, Eastman Chemical's stock rose 1.00%, ending the trading session at $108.58.
Volume traded for the day: 966.29 thousand shares.
Stock performance in the last month – up 0.40%; previous three-month period – up 8.91%; past twelve-month period – up 36.48%; and year-to-date – up 17.21%
After yesterday's close, Eastman Chemical's market cap was at $15.61 billion.
Price to Earnings (P/E) ratio was at 14.94.
The stock has a dividend yield of 2.06%.
The stock is part of the Basic Materials sector, categorized under the Chemicals - Major Diversified industry. This sector was up 0.5% at the end of the session.
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