Will Lowered Earnings Guidance and Revenue Decline Shift Eastman Chemical's (EMN) Investment Narrative?

• Eastman Chemical reported second quarter 2025 earnings that missed analyst expectations, with earnings of US$1.60 per share, US$0.12 below consensus, and a year-over-year decline in revenue amid a challenging macroeconomic environment and tariff impacts.
• An important takeaway is the company's lowered third-quarter earnings guidance and accompanying analyst estimate cuts for both 2025 and 2026, signaling persistent pressure on industry demand and profit outlooks.
• We'll examine how management's focus on supply chain and commercial adjustments amid lowered earnings forecasts could reshape Eastman Chemical's investment narrative.

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Eastman Chemical Investment Narrative Recap

To be a shareholder in Eastman Chemical today, you need to believe in the company's ability to capture growth in sustainable materials and advanced recycling, even as short-term industry demand remains pressured by tariffs and global economic uncertainty. The recent weaker earnings report and lowered guidance are a setback for momentum, weakening the most important near-term catalyst, recovery in end-market demand, while amplifying risk around prolonged volume weakness and underutilization of assets. Of the latest company announcements, Eastman’s continued quarterly dividend of US$0.83 per share stands out. While this points to ongoing shareholder returns, its sustainability takes on new significance as cash flows face additional pressure from softer earnings, underscoring how payout stability may now depend even more on an improvement in operating leverage. On the flip side, investors should also be aware that persistent tariff impacts could...

Read the full narrative on Eastman Chemical (it's free!)

Eastman Chemical's outlook forecasts $9.6 billion in revenue and $904.5 million in earnings by 2028. This is based on a projected annual revenue growth rate of 1.0% and a $72.5 million increase in earnings from the current level of $832.0 million.

Uncover how Eastman Chemical's forecasts yield a $76.65 fair value, a 9% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members have published seven fair value estimates for Eastman Chemical ranging from US$60 to US$167, reflecting a broad spectrum of outcomes. With global trade tensions and high tariffs impacting both near-term catalysts and core earnings potential, it's clear your viewpoint can vary widely depending on which risks or growth drivers you see as most influential.

Explore 7 other fair value estimates on Eastman Chemical - why the stock might be worth 15% less than the current price!

Build Your Own Eastman Chemical Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Eastman Chemical research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Eastman Chemical research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Eastman Chemical's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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