Eastman Chemical Company Stock Buy Recommendation Reiterated (EMN)
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- The revenue growth came in higher than the industry average of 4.7%. Since the same quarter one year prior, revenues rose by 25.9%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Net operating cash flow has increased to $440.00 million or 25.00% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -2.66%.
- Compared to its closing price of one year ago, EMN's share price has jumped by 25.40%, exceeding the performance of the broader market during that same time frame. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- EASTMAN CHEMICAL CO has exprienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, EASTMAN CHEMICAL CO reported lower earnings of $3.03 versus $4.21 in the prior year. This year, the market expects an improvement in earnings ($6.40 versus $3.03).
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Chemicals industry and the overall market on the basis of return on equity, EASTMAN CHEMICAL CO has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
--Written by a member of TheStreet Ratings Staff. Exclusive Offer: Jim Cramer's 'go-to' small/mid-cap guru Bryan Ashenberg only buys stocks he thinks could return 50-100%. See his top picks for 14-days FREE.
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