Eastman Chemical Plunges 19% on $440M in Volume Ranking 299th as Earnings Miss and Weak Demand Weigh

Eastman Chemical (EMN) fell 19.03% on August 1, 2025, with a trading volume of $0.44 billion, ranking 299th in market activity. The decline followed a second-quarter earnings report that missed expectations, with adjusted earnings per share (EPS) of $1.60, a 38% drop from $2.15 in the prior year, and revenue of $2.287 billion, down 3% year-over-year. The company attributed the underperformance to trade uncertainties, weak demand in key end markets, and margin pressures across segments like Chemical Intermediaries and Fibers.

Segment performance highlighted uneven results. Additives & Functional Products saw a 7% revenue increase driven by higher prices and favorable currency effects, while Chemical Intermediaries and Fibers faced declines of 10% and 17%, respectively, due to lower volumes and pricing. Management emphasized cost-cutting initiatives and supply chain optimizations to mitigate trade-related headwinds but acknowledged ongoing challenges in stabilizing demand, particularly in consumer durables and automotive sectors.

Outlook guidance for Q3 2025 pointed to adjusted earnings of $1.25 per share, with full-year operating cash flow targeting $1 billion. Despite these measures, the company noted a “challenging global macroeconomic environment” and customer caution amid shifting tariff policies. Analysts highlighted the stock’s undervalued metrics, including a P/E ratio of 9.15x and a 4.57% dividend yield, though the recent sell-off brought the price closer to its 52-week low.

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