With a market cap of $9.2 billion, Eastman Chemical Company (EMN) is a global specialty materials manufacturer, with operations spanning the United States, China, and other international markets. The company produces a wide range of chemicals, plastics, and fibers that serve diverse industries, including transportation, construction, electronics, and healthcare.
The Kingsport, Tennessee-based company is slated to announce its fiscal Q2 2025 earnings results after the market closes on Thursday, Jul. 31. Ahead of this event, analysts expect EMN to report an adjusted EPS of $1.77, a 17.7% decline from $2.15 in the year-ago quarter. However, it has exceeded Wall Street's earnings expectations in the past four quarters.
For fiscal 2025, analysts forecast the specialty chemicals maker to report adjusted EPS of $7.22, marking a decrease of 8.5% from $7.89 in fiscal 2024. Nevertheless, adjusted EPS is anticipated to grow 12.6% year-over-year to $8.13 in fiscal 2026.
Over the past 52 weeks, shares of Eastman Chemical have dropped 17%, underperforming the broader S&P 500 Index's ($SPX) 13.4% gain and the Materials Select Sector SPDR Fund's (XLB) 4.1% return over the same time frame.
Despite Eastman Chemical reporting better-than-expected Q1 2025 adjusted EPS of $1.91 on Apr. 24, shares dipped 6.2% the next day as revenue came in at $2.3 billion, missing the consensus estimates. Segment-level underperformance, particularly in Advanced Materials and Fibers, which saw revenue declines of 3.9% and 12.9% respectively, signaled demand softness and pricing pressure. Moreover, Q2 guidance flagged ongoing headwinds from U.S.-China tariffs, elevated maintenance expenses, and only modest sequential volume growth, with the company projecting adjusted EPS in the range of $1.70 to $1.90.
Analysts' consensus view on Eastman Chemical stock is cautiously optimistic, with a "Moderate Buy" rating overall. Among 15 analysts covering the stock, eight suggest a "Strong Buy," two give a "Moderate Buy," and five recommend a "Hold." As of writing, EMN is trading below the average analyst price target of $94.94.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
