Stock Monitor: Rayonier Advanced Materials Post Earnings Reporting
LONDON, UK / ACCESSWIRE / February 22, 2018 / Active-Investors.com has just released a free earnings report on Eastman Chemical Co. (NYSE: EMN). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/'symbol=EMN. The Company reported its financial results on February 01, 2018, for the quarter ended and full year ended December 31, 2017. The Company demonstrated a strong performance in Q4 FY17 and fiscal 2017, driven by the strength of its portfolio and the benefits of its innovation-driven growth model. Register today and get access to over 1000 Free Research Reports by joining our site below:
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Active-Investors.com is currently working on the research report for Rayonier Advanced Materials Inc. (NYSE: RYAM), which also belongs to the Basic Materials sector as the Company Eastman Chemical. Do not miss out and become a member today for free to access this upcoming report at:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Eastman Chemical most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
www.active-investors.com/registration-sg/'symbol=EMN
Earnings Highlights and Summary
For the fourth quarter of FY17, Eastman Chemical's total revenues reached $2.36 billion, up 7.95% from $2.19 billion in Q4 FY16, led by a strong growth of high-margin products in its specialty businesses. The Company's revenue numbers were higher than analysts'consensus estimates of $2.29 billion.
Eastman Chemical's total operating expenses decreased 4.20% to $228 million in Q4 FY17 from $238 million in Q4 FY16. This was mainly led by a reduction in research and development (R&D) expenses, and asset impairment and restructuring charges. The Company's operating income was $268 million for the reported quarter, a y-o-y growth of 6.35%. Eastman Chemical's adjusted operating income, excluding non-core and unusual items, was $354 million, up 5.36% y-o-y.
The Company's net earnings attributable to common shareholders were $581 million for the reported quarter compared to $116 million in the year ago same quarter. The Company's diluted earnings per share (EPS) also rose to $4.01 in Q4 FY17 from $0.79 in Q4 FY16, a change of approximately 407.59%. The reported numbers included costs of $0.55 per diluted share resulting from a coal gasification incident, and a net benefit of $2.91 per share from the enactment of the Tax Cuts and Jobs Act 2017 (TCJA). The Company's adjusted diluted EPS, excluding non-recurring and non-core items, came in at $1.62 in Q4 FY17, up from $1.51 in Q4 FY16, reflecting a change of 7.28%. The earnings numbers surpassed analysts' estimates of $1.06 per share.
For the year ended December 31, 2017, Eastman Chemical's total revenues were $9.55 billion, up 6.01% from $9.01 billion in FY16. Eastman Chemical's net earnings attributable to common shareholders advanced 72.60% to $1.47 billion in the year under review from $854 million in the previous year. The Company's diluted EPS also rose to $10.09 in FY17 from $5.75 in FY16, reflecting a change of 75.48%. For FY17, the Company's adjusted diluted EPS, excluding non-recurring and non-core items, were $7.61; an increase of 12.57% from $6.76 in FY16.
Segment Details
During Q4 2017, Eastman Chemical's Additives and Functional Products segment's net revenues jumped 18.61% to $854 million on a y-o-y basis, mainly due to higher sales volumes for most product lines, favorable currency swings, and increased selling prices. The segment's operating earnings were $149 million in Q4 FY17, 24.17% higher than $120 million in Q4 FY16. The segment's adjusted operating earnings were $160 million for the reported quarter compared to $132 million for the same period of last year, reflecting a y-o-y change of 21.21%.
For Q4 FY17, Eastman Chemical's Advanced Materials segment's net revenues advanced 8.73% to $635 million on a y-o-y basis. Approximately 6% of the revenue growth in this segment was attributed to a volume/product mix effect. In the reported quarter, the segment's operating income decreased 7.78% to $83 million y-o-y, mainly due to net costs resulting from the coal gasification incident. The Advanced Materials segment's adjusted operating income increased 4.44% to $94 million in Q4 FY17 from $90 million in Q4 FY16.
During Q4 FY17, Eastman Chemical's Chemical Intermediates segment's net revenues increased 2.49% to $659 million y-o-y, due to higher selling prices and improved market conditions. For Q4 FY17, the segment's operating income was $9 million, a y-o-y decrease of 82%, mainly due to additional costs of $44 million from the coal gasification incident. The segment's adjusted operating income increased to $53 million in Q4 FY17 from $50 million in the same period of 2016.
In Q4 FY17, Eastman Chemical's Fibers segment's net revenues fell 13.04% to $200 million y-o-y, due to lower selling prices and volumes, especially for acetate tow. In the reported quarter, the segment's operating income decreased 97.26% to $2 million y-o-y, mainly due to net costs of $49 million from the coal gasification incident. The segment's adjusted operating income fell 30.14% to 51 million in Q4 FY17 from $73 million in Q4 FY16.
Cash Matters
Eastman Chemical had cash and cash equivalents of $191 million as on December 31, 2017, compared to $181 million as on December 31, 2016. The Company's total borrowings were $6.43 billion as on December 31, 2017, compared to $6.59 billion as on December 31, 2016.
For the quarter ended December 31, 2017, Eastman Chemical's net cash flow from operating activities was $646 million compared to $390 million for the same period in 2016. The Company's adjusted free cash flow was $435 million for Q4 FY17 compared to $289 million in Q4 FY16.
In 2017, the Company returned nearly $646 million to its stockholders in the form of dividends of $296 million and share repurchases of $350 million. The Company also repaid debt of $350 million in the year under review, with total borrowings reduced by $163 million, including the negative impact of currency translation on the carrying value of euro-denominated borrowings.
Outlook
Eastman Chemical expects its growth momentum to continue in 2018 owing to its growth-oriented investments, high-margin products, and innovation. The Company expects an adjusted EPS growth of 8% - 12% in 2018.
Stock Performance Snapshot
February 21, 2018 - At Wednesday's closing bell, Eastman Chemical's stock slightly climbed 0.80%, ending the trading session at $101.09.
Volume traded for the day: 1.01 million shares.
Stock performance in the last month - up 3.40%; previous three-month period - up 12.65%; past twelve-month period - up 24.91%; and year-to-date - up 9.12%
After yesterday's close, Eastman Chemical's market cap was at $14.53 billion.
Price to Earnings (P/E) ratio was at 9.99.
The stock has a dividend yield of 2.22%.
The stock is part of the Basic Materials sector, categorized under the Chemicals - Major Diversified industry.
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