Irving, Texas-based Celanese Corporation (CE) produces and sells high-performance engineered polymers. Valued at $8 billion by market cap, the company develops specialty polymers for paints, adhesives, and pharmaceuticals, and offers vinyl acetate emulsions, ethylene vinyl acetate resins, and redispersible powders (RDP) for construction purposes. The global chemical and specialty materials company is expected to announce its fiscal fourth-quarter earnings for 2024 after the market closes on Tuesday, Feb. 18.
Ahead of the event, analysts expect CE to report a profit of $1.20 per share on a diluted basis, down 46.4% from $2.24 per share in the year-ago quarter. The company missed the consensus estimates in three of the last four quarters while beating the forecast on another occasion.
For the full year, analysts expect CE to report EPS of $8.11, down 9.1% from $8.92 in fiscal 2023. However, its EPS is expected to rise 8.4% year over year to $8.79 in fiscal 2025.
CE stock has significantly underperformed the S&P 500’s ($SPX) 25.8% gains over the past 52 weeks, with shares down 49.6% during this period. Similarly, it underperformed the Materials Select Sector SPDR Fund’s (XLB) 7.8% gains over the same time frame.
CE's underperformance stems from a perfect storm of challenges, including a dividend cut, macroeconomic headwinds, along with softening demand and production deceleration from the automotive and industrial sectors. Moreover, weakened demand in key markets, such as paints and construction, and a slowdown in China further exacerbated the decline.
On Nov. 4, CE reported its Q3 results, and its shares closed down more than 26% in the following trading session. Its adjusted EPS of $2.44 missed Wall Street expectations of $2.84. The company’s revenue was $2.65 billion, falling short of Wall Street forecasts of $2.68 billion. For Q4, CE expects adjusted EPS to be $1.25.
Analysts’ consensus opinion on CE stock is cautious, with a “Hold” rating overall. Out of 17 analysts covering the stock, three advise a “Strong Buy” rating, one suggests a “Moderate Buy,” 10 give a “Hold,” and three recommend a “Strong Sell.” CE’s average analyst price target is $89.50, indicating a potential upside of 21.4% from the current levels.
