KINGSPORT, Tenn. - Eastman Chemical Company (NYSE:EMN) reported third-quarter earnings that surpassed analyst expectations, driven by strong sales volume growth across all segments. The company's stock rose 1.8% following the announcement.
The specialty materials manufacturer posted adjusted earnings per share of $2.26, exceeding the analyst consensus of $2.15. Revenue for the quarter came in at $2.46 billion, topping estimates of $2.38 billion and representing a 9% increase YoY.
Eastman attributed the strong performance to an 8% rise in sales volume/mix, primarily due to the end of customer inventory destocking across most key end markets and innovation driving growth above underlying market trends. The company saw improvement in all operating segments, with adjusted EBIT margin expanding 360 basis points compared to the same quarter last year.
"Our third-quarter results were driven by strong sales volume/mix growth, operating leverage, and continued commercial excellence," said Mark Costa, Board Chair and CEO. "Underlying end-market trends remained largely unchanged from the second quarter, consistent with our expectations."
The company narrowed its full-year 2024 EPS guidance to a range of $7.50 to $7.70, compared to the previous analyst consensus of $7.69. Eastman expects cash from operations to approach $1.3 billion for the year.
Costa added, "While we have made significant progress achieving consistent production rates at the Kingsport methanolysis facility, it has taken us longer than expected to achieve those rates. Despite these challenges, the strong results we have delivered in our base business enable us to keep the midpoint of our full-year adjusted EPS guidance unchanged."
Eastman returned $195 million to stockholders through share repurchases and dividends during the quarter. The company also announced its decision to move forward with the construction of a second methanolysis facility in Longview, Texas, as part of its circular economy initiatives.
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