Lower Outlook Overshadow Eastman Chemical Company (NYSE:EMN)’s Solid Q3 Earnings

Denver, CO, 10/28/2013 (Avauncer.com) – In the Q3.13 period running July-September, Eastman Chemical Company (NYSE:EMN) posted improved earnings beating the Wall Street estimates. This was due to better than expected sales in the chemical company’s advanced-materials and additives products. The pickup in sales of additives, advanced-materials and functional products helped EMN to realize revenue growth for the quarter. Due to the bulge in sales volumes in the named segments, the company was able to offset its lower run of plasticizers and adhesives which actually appeared to be its greatest undoing for the quarter.

In numbers, for the Q3 period, the chemical company reported per share earnings of $1.97. This indicated a rise from the prior-year quarter which was $0.99 per share. Its revenue in the just reported quarter increased 3% from $2.26 billion in the comparable prior quarter to hit $2.34 billion.  If the impact of special items is excluded from this quarter’s earnings, the company realized $1.68 per share earnings. Wall Street wanted the company to post adjusted earnings of $1.64 per share on $2.34 billion in revenue. Still on numbers, EMN exited Q3.13 with cash and cash equivalents at $222 million, indicating 6% decline on year-over-year basis. Its operating cash flow went up by 21% in the quarter to $427 million on year over year basis. The chemical company also reduced its long-term debt by 9% to roughly $4.4 billion in the just reported quarter. During the same quarter, EMN repurchased its shares worth $35 million.

Although the future looks promising for the company, it expects continued lackluster performance in its adhesives and plasticizers business division. And on the stock, the Kingsport-based company ended regular trading down $4.24 at $77.94 on Friday. This decline in share value which started Thursday has been linked to its lowered outlook which has effectively overshadowed the solid quarter results. EMN’s shares are up nearly 21% this year.

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