Eastman Chemical narrows FY24 EPS view to $7.40-$7.85, consensus $7.67

Previous view $7.25-$8.00. Commenting on the outlook for full-year 2024, Costa said, “We delivered solid results in the first half of the year despite a weak global economic environment. Through this year, we are benefiting from the end of destocking, as our volumes have reconnected to underlying demand. Consistent with our previous end-market expectations, we continue to see little evidence for end-market demand improvement in the second half of the year. In this context, we remain focused on leveraging our innovation-driven growth model to deliver growth above our end markets, especially in the circular economy. We also expect to benefit from continued pricing discipline, improved asset utilization, and disciplined cost management. We expect the benefit of earnings generated by our Kingsport methanolysis facility to be around a $50 million incremental EBITDA contribution. Taking these factors together, we expect 2024 EPS to be between $7.40 and $7.85 and for 2024 cash from operations to be approximately $1.4 billion. I remain confident in our ability to deliver earnings growth and strong cash flow going forward.”