Eastman's 3Q profit beats, shares soar
NEW YORK -- Eastman Chemical Co.'s shares jumped in trading Friday after the chemical company reported a third-quarter profit that beat market expectations.
The company also raised its full-year outlook in the earnings report issued late Thursday. Its stock was up more than 13 percent in afternoon trading.
CEO Jim Rogers said that Eastman's acquisition of Solutia this summer boosted the company's performance. Results were strong throughout Eastman's operations, he said.
Eastman, which is based in Kingsport, Tenn., is entering its slowest season and it expects higher material and energy costs toward the end of the year. But Rogers said Eastman expects to maintain its strong performance in a stable economy.
The company now expects to earn $5.30 to $5.40 per share for the year on an adjusted basis, up from its prior forecast of $5.30 per share. Analysts polled by FactSet were expecting the company to earn $5.26 for the year.
Eastman earned $154 million, or 99 cents per share, for the quarter. That's compared with net income of $174 million, or $1.22 per share, in the same quarter of the prior year. It earned $1.57 per share on an adjusted basis from continuing operations versus $1.26 per share last year.
Its total revenue increased to $2.26 billion from $1.81 billion.
Analysts were expecting earnings of $1.42 per share on revenue of $2.35 billion.
Shares of the company jumped $7.1 to $60.80. It earlier set a new 52-week trading high of $61.11.
Eastman makes chemicals, plastics and fibers and other products. Its stock price has climbed fairly steadily over the past few years. Its shares have increased in value several times over since 2009 when it was at a five-year low of $8.88.