Eastman (EMN) Falls to New Low on Earnings Drop

We recently published 10 Stocks Investors Are Dumping Fast. Eastman Chemical Company (NYSE:EMN) is one of the worst-performing stocks on Friday.

Eastman Chemical fell to a new low on Friday, extending a five-day losing streak, as investor sentiment was dented by a disappointing earnings performance and lower growth outlook for the rest of the year.

At intra-day trading, the company fell to its lowest price of $56.78 before slight buying pushed its shares higher to end the day just down by 19.03 percent at $58.79.

Based on its financial statement, Eastman Chemical Company (NYSE:EMN) dropped its attributable net income by 39 percent to $140 million from $230 million in the same period last year, as sales dipped by 3 percent to $2.29 billion from $2.36 billion year-on-year due to lower sales volume, dragged by weak primary demand in key end markets, including building and construction and automotive OEM production.

In the first half, attributable net income declined by 18 percent to $322 million from $395 million, while revenues decreased by 2 percent to $4.58 billion from $4.67 billion year-on-year.

Looking ahead, Eastman Chemical Company (NYSE:EMN) recognized that certain macroeconomic uncertainties will continue to impact its financials and operations negatively, thus expecting volumes to continue to decline due to trade disputes impact.

“We project third-quarter adjusted earnings per share to be around $1.25. We expect to generate a full-year operating cash flow of ~$1 billion as declines in cash earnings will be partially offset by a release of working capital. We are in a solid financial position in an industry that is going on four years of significant challenges,” said Eastman Chemical Company (NYSE:EMN) CEO Mark Costa.