Analyst Note| Seth Goldstein, CFA |
Eastman's fourth-quarter results showed the company's businesses are recovering from the coronavirus-related economic slowdown. Operating earnings were up around 18% year on year during the quarter, led by growth in the company's two main segments: advanced materials and additives and functional products. Management expects the recovery to continue in 2021, guiding to adjusted EPS growth of 20%-30% for the year. We see continued recovery in all segments and think the guidance is achievable albeit at the lower end of the range.