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Eastman earnings benefiting from lower costs
Eastman Chemical Co. has guided its third-quarter earnings above Wall Street’s expectations, citing in part a recent drop in raw material and energy costs.
The company said late Wednesday it expects profit, excluding one-time costs, to be above the high end of analysts’ estimates.
Eastman stock closed Wednesday at $42.75 - a new 52-week low after closing at $46.00 a share on Tuesday. Company stock peaked at $78.29 in the past year.
Analysts polled by Thomson Reuters expect earnings in the range of $1.17 to $1.30 per share for the period, with an average of $1.23 per share. Analysts typically exclude one-time charges.
“The improved earnings per share were driven by higher operating earnings primarily due to a recent decline in raw material and energy costs, higher sales revenue, and ongoing cost reductions which more than offset lower sales volume due to softening demand,” Eastman Chemical said in a statement.
The company is set to report final third-quarter results after the closing bell on Oct. 23.
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