Eastman Chemical (NYSE:EMN) Stock Breaks Above Fifty Day Moving Average Following Weak Earnings

Key Points

• Eastman Chemical shares rose above their 50-day moving average, reaching $68.17 and closing near $68, despite the company’s mixed earnings report.
• Third-quarter revenue increased 8.3% year over year to $2.38 billion, but adjusted EPS of $1.84 and revenue both fell short of analyst estimates.
• Management maintained its full-year adjusted EPS outlook of $6.00–$6.20, while the Department of Energy reinstated a $375 million award; the company also offers a 4.9% dividend yield.

Eastman Chemical Company (NYSE:EMN - Get Free Report)'s stock price passed above its 50-day moving average during trading on Thursday following a better than expected earnings announcement. The stock has a 50-day moving average of $67.00 and traded as high as $68.17. Eastman Chemical shares last traded at $68.00, with a volume of 1,726,429 shares traded.

The basic materials company reported $1.84 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.92 by ($0.08). Eastman Chemical had a return on equity of 9.46% and a net margin of 4.99%. The firm had revenue of $2.38 billion for the quarter, compared to analyst estimates of $2.41 billion. During the same period in the previous year, the firm earned $1.14 earnings per share. Eastman Chemical's revenue was up 8.3% on a year-over-year basis.

Eastman Chemical Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, October 7th. Stockholders of record on Tuesday, September 15th were paid a $0.84 dividend. The ex-dividend date of this dividend was Tuesday, September 15th. This represents a $3.36 annualized dividend and a dividend yield of 4.9%. Eastman Chemical's payout ratio is currently 87.50%.

Key Eastman Chemical News

Here are the key news stories impacting Eastman Chemical this week:

• Positive Sentiment: The U.S. Department of Energy reinstated a $375 million award to Eastman, supporting the company’s plans and reducing uncertainty around the funding. Eastman Chemical says DoE reinstates $375M award; Q3 earnings miss consensus
• Positive Sentiment: Third-quarter revenue rose approximately 8% year over year to $2.38 billion, helped by higher selling prices and a 1% improvement in sales volume and mix. Advanced Materials, Additives & Functional Products, and Chemical Intermediates all posted revenue gains. Eastman Chemical Company Reports Earnings Results
• Positive Sentiment: Management maintained its full-year adjusted EPS outlook of $6.00 to $6.20 and expects $125 million to $150 million of 2026 cost savings, while reporting $290 million of quarterly operating cash flow and returning $96 million through dividends. Eastman Announces Third-Quarter 2026 Financial Results
• Neutral Sentiment: Eastman reported GAAP diluted EPS of $2.19, compared with $0.60 a year earlier; however, adjusted EPS was reported at $1.84, making comparisons dependent on the measure used.
• Negative Sentiment: Adjusted third-quarter EPS of $1.84 missed the $1.92 consensus estimate, while revenue of roughly $2.38 billion was below the $2.41 billion forecast. Eastman Chemical Misses Q3 Earnings and Revenue Estimates
• Negative Sentiment: JPMorgan downgraded EMN from Overweight to Neutral, signaling reduced near-term conviction in the stock’s upside potential. JPMorgan downgrades Eastman Chemical

Wall Street Analysts Forecast Growth

Several research firms recently commented on EMN. Wall Street Zen lowered shares of Eastman Chemical from a "buy" rating to a "hold" rating in a research note on Saturday, September 12th. Jefferies Financial Group reissued a "buy" rating and set a $85.00 price objective on shares of Eastman Chemical in a research note on Friday, September 25th. Citigroup decreased their target price on Eastman Chemical from $81.00 to $76.00 and set a "buy" rating on the stock in a report on Wednesday, September 30th. KeyCorp initiated coverage on Eastman Chemical in a research report on Thursday, September 10th. They set a "sector weight" rating on the stock. Finally, JPMorgan Chase & Co. downgraded Eastman Chemical from an "overweight" rating to a "neutral" rating and reduced their target price for the company from $82.00 to $66.00 in a report on Friday, October 16th. Six investment analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the stock has a consensus rating of "Hold" and an average price target of $74.64.

Institutional Trading of Eastman Chemical

A number of hedge funds have recently modified their holdings of EMN. Elevation Wealth Partners LLC acquired a new position in Eastman Chemical in the 3rd quarter valued at $25,000. Continuum Advisory LLC acquired a new stake in shares of Eastman Chemical in the second quarter valued at about $40,000. Altshuler Shaham Ltd increased its stake in shares of Eastman Chemical by 36.9% in the first quarter. Altshuler Shaham Ltd now owns 538 shares of the basic materials company's stock worth $41,000 after purchasing an additional 145 shares during the period. Quantbot Technologies LP acquired a new position in shares of Eastman Chemical during the 2nd quarter worth about $44,000. Finally, Mitsubishi UFJ Asset Management Co. Ltd. bought a new stake in Eastman Chemical during the 2nd quarter valued at approximately $46,000. Hedge funds and other institutional investors own 83.65% of the company's stock.

Eastman Chemical Trading Up 2.0%

The company has a market capitalization of $7.78 billion, a P/E ratio of 17.71, a P/E/G ratio of 0.86 and a beta of 1.06. The company has a 50-day simple moving average of $67.00 and a 200 day simple moving average of $70.93. The company has a debt-to-equity ratio of 0.72, a quick ratio of 0.76 and a current ratio of 1.50.

Eastman Chemical Company Profile

Eastman Chemical Company NYSE: EMN is a global specialty materials and chemicals company that develops and manufactures products used in transportation, building and construction, consumer goods, medical products, packaging, and other industrial applications. Its portfolio includes specialty plastics, coatings, adhesives, fibers, additives, intermediates, and other performance materials.

The company's products are designed to provide properties such as durability, chemical resistance, lightweight performance, clarity, and enhanced functionality.

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