Will These Numbers from Eastman Chemical Be Good Enough for You?

Eastman Chemical (NYS: EMN) is expected to report Q2 earnings on July 29. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Eastman Chemical's revenues will increase 29.2% and EPS will expand 17.1%.

The average estimate for revenue is $2.39 billion. On the bottom line, the average EPS estimate is $1.64.


Revenue details
Last quarter, Eastman Chemical logged revenue of $2.31 billion. GAAP reported sales were 27% higher than the prior-year quarter's $1.82 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $1.62. GAAP EPS of $1.57 for Q1 were 40% higher than the prior-year quarter's $1.12 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 26.7%, 300 basis points better than the prior-year quarter. Operating margin was 17.5%, 250 basis points better than the prior-year quarter. Net margin was 10.7%, 200 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $9.40 billion. The average EPS estimate is $6.34.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 194 members out of 220 rating the stock outperform, and 26 members rating it underperform. Among 70 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 66 give Eastman Chemical a green thumbs-up, and four give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Eastman Chemical is outperform, with an average price target of $80.33.

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The article Will These Numbers from Eastman Chemical Be Good Enough for You? originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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