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Eastman Chemical Lifts FY Earnings Guidance (EMN)

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Eastman Chemical Company (NYSE: EMN) reported that its fiscal second-quarter net income rose 48%, as the top line was boosted by recent acquisition of Solutia Inc. even as sales mainly in all segments showed improvement.

Shares jumped about 4% in afterhours trading as adjusted earnings and revenue topped Wall Street’s expectation. The Company also lifted its full-year earnings guidance.

Through Monday’s close, the stock has gained 45% in last one year, according to the Wall Street Journal.

For the full-year fiscal, the company raised its earnings outlook by 10 cents to a range of $6.40 to $6.50 a share.

The Kingsport, Tennessee-based Company expects earnings to show a double digit percentage growth through 2015. However, the company fears that growth rate will ease a bit in the second half of 2013.

For the fiscal second quarter, the company posted a net income of $264 million or $1.69 a share compared to a net income of $179 million or $1.26 a share, in the same quarter of last year.

After adjusting onetime items such as expenses linked to the acquisition of Solutia and restructuring charges, non-GAAP/adjusted earnings stood at $1.80 a share up from $1.40 a share, in the year-earlier quarter.

Revenue soared 32% to $2.44 billion. Sales were strong across all segments but for additive and functional products.

Analysts’ consensus estimate was for earnings of $1.64 a share on revenue of $2.4 billion, according to a data compiled by Thomson Reuters.

Gross margin improved to 27.7% from 26%, in the same quarter of last year.

Sales from specialty and intermediates segment, which generates bulk of the revenue, rose 19%.

 








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edliston
Post Written By: Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.

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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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