Celanese Corporation (CE), headquartered in Irving, Texas, is a chemical and specialty materials company that manufactures and sells high-performance engineered polymers. Valued at $15.17 billion by market cap, the company produces specialty material solutions used across major industries and consumer applications. The global chemical and specialty materials company is expected to announce its fiscal second-quarter earnings for 2024 after the market closes on Thursday, Aug. 1.
Ahead of the event, analysts expect CE to report a profit of $2.80 per share on a diluted basis, up 29% from $2.17 per share in the year-ago quarter. The company beat the consensus estimates in two of the last four quarters while missing on two other occasions. During the previous quarter, CE completed the startup of a new 1.3 million-ton Clear Lake acetic acid expansion unit.
For fiscal 2024, analysts expect CE to report EPS of $11.26, up 26.2% from $8.92 in fiscal 2023.
CE stock has significantly underperformed the S&P 500’s ($SPX) 16.5% gains on a YTD basis, with shares down 10.6% during this period. Similarly, it underperformed the US Basic Materials iShares ETF’s (IYM) 3.3% gains over the same time frame.
On May 8, CE reported its Q1 results. Its adjusted EPS was $2.08, beating the consensus estimates of $1.91. The company’s revenue of $2.61 billion fell short of Wall Street estimates of $2.75 billion. It reported adjusted EBIT of $407 million, operating profit of $210 million, and operating EBITDA of $583 million. For Q2, CE expects its EPS to be between $2.60 and $3. CE shares closed up marginally on the day the results were released but have been on a downtrend since then.
On Apr. 4, CE shares closed down more than 4% after JPMorgan Chase downgraded the stock to Underweight from Neutral with a price target of $160.
Analysts’ consensus opinion on CE stock is bullish, with a “Moderate Buy” rating overall. Out of 17 analysts covering the stock, five advise a “Strong Buy” rating, one has a “Moderate Buy” rating, nine recommend a “Hold” rating, one suggests a “Moderate Sell” rating, and one gives a “Strong Sell.” The average analyst price target for CE is $161.44, indicating a 16.3% potential upside from the current levels.
On the date of publication, Dipanjan Banchur did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
