Eastman Sees FY23 EPS $6.30-$6.50 Vs $6.63 Est.; Operating Cash Flow To Approach $1.4B
Portfolio Pulse from Happy Mohamed
Eastman Chemical Company (EMN) has provided its FY23 outlook, expecting EPS to be between $6.30 and $6.50, lower than the estimated $6.63. The company also expects its operating cash flow to approach $1.4 billion. Despite the challenging global economic environment, Eastman has managed to meet its earnings and cash flow expectations for Q3, thanks to disciplined pricing, strong results in the Fibers segment, and decisive actions to generate strong cash flow. The company is on track to reduce its cost structure by $200 million for the year, net of inflation.
October 26, 2023 | 8:20 pm
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Eastman's FY23 EPS outlook is lower than estimated, which could negatively impact its stock price. However, the company's ability to meet earnings and cash flow expectations in a challenging environment and its cost reduction efforts may offset some of this impact.
Eastman's lower than expected EPS outlook for FY23 could lead to a negative sentiment among investors, potentially driving the stock price down. However, the company's strong Q3 performance and its ongoing cost reduction efforts, which are expected to save $200 million for the year, could help mitigate some of this negative impact.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100