KINGSPORT, Tenn. - Eastman Chemical Company (NYSE:EMN) has reported a positive start to 2024 with its first-quarter earnings and revenue surpassing analyst expectations.
The company announced an adjusted EPS of $1.61, which is $0.18 higher than the consensus estimate of $1.43. Revenue for the quarter was also strong at $2.31 billion, exceeding the analyst projection of $2.29 billion by a slight margin. The stock was up 0.29% in aftermarket trading.
Mark Costa, Board Chair and CEO of Eastman Chemical, attributed the robust performance to a sequential increase in sales volume/mix, particularly in the Advanced Materials and Additives & Functional Products segments, which saw a reconnection to primary demand for many of their specialty products. The company's success was further bolstered by the on-spec production and revenue generation at the Kingsport methanolysis facility, marking a significant milestone for Eastman.
In comparison to the same quarter last year, Eastman's sales revenue saw a slight decrease from $2.41 billion in the first quarter of 2023. However, the company's adjusted EBIT for the first quarter of 2024 was $274 million, down from $283 million YoY. The Advanced Materials segment reported a 1% increase in sales revenue, while the Fibers segment saw a more significant 9% increase due to higher sales volume/mix and selling prices. In contrast, the Additives & Functional Products and Chemical Intermediates segments experienced decreases in sales revenue by 9% and 11%, respectively.
Looking ahead, Eastman Chemical provided guidance for the full year of 2024, forecasting an EPS range of $7.25 to $8.00. This guidance midpoint falls slightly below the analyst consensus of $7.67. Despite uncertainties in primary demand across key markets and geographies, the company remains confident in its innovation-driven growth model and expects to benefit from the Kingsport methanolysis facility's contribution to earnings, particularly in the second half of the year.
CEO Mark Costa expressed confidence in the company's trajectory, stating, "We have started 2024 with strong momentum. Demand in our base business is recovering, and we have solidified our position as a world leader in the circular economy. I am confident in our ability to deliver earnings growth and strong cash flow going forward."
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