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The company surpassed Zacks Consensus Estimate for earnings in two of the last four quarters while missing it twice. It has a trailing four-quarter earnings surprise of around 7.2% on average. It posted a negative earnings surprise of 1% in the last reported quarter.
Celanese is expected to have faced headwinds from weaker volumes, consumer de-stocking and weak demand in Europe and Asia. However, the company is likely to have gained from improved pricing.
Celanese’s shares have lost 17.4% in the past year compared with the industry’s decline of 12.8%.
Image Source: Zacks Investment Research
What Do the Estimates Say?
The company expects adjusted earnings per share for the fourth quarter to be between $1.50 and $2.00.
The Zacks Consensus Estimate for sales for the to-be-reported quarter is currently pegged at $2,415 million, which suggests a rise of 6.2% from the year-ago reported number.
The Zacks Consensus Estimate for net sales of CE’s Acetate Tow (AT) segment for the fourth quarter is $125 million, implying a decline of 3.1% year over year. The consensus estimate for its Engineered Materials (EM) segment is currently pegged at $1,094 million, which indicates a 54.7% rise from the prior year’s levels. The consensus mark for CE’s Acetyl Chain (AC) segment is $1,123 million, down 11.9% on a sequential basis.
Some Factors to Watch
Celanese is expected to have gained from stable demand in end markets in the United States for its AC segment. However, a decline in volumes due to a fall in seasonal demand, consumer de-stocking and weak demand in Europe and Asia and certain end markets are expected to have put a dent in its EM and AC segment.
Also, CE is expected to have witnessed an improvement in acetic acid pricing on a sequential basis. The AT segment is likely to have been hurt by cost inflation, which is expected to have been mitigated by a rise in volumes and improved pricing. Also, CE might have faced headwinds from raw materials, energy and logistic cost inflation in the fourth quarter. Higher costs are expected to have been a drag on its fourth-quarter margins.
Zacks Model
Our proven model does not conclusively predict an earnings beat for Celanese this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here.
Earnings Beat: Earnings ESP for Celanese is -7.75%. The Zacks Consensus Estimate for earnings for the fourth quarter is currently pegged at $1.56. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Celanese currently carries a Zacks Rank #3.
Here are some companies in the basic materials space you may want to consider, as our model shows these have the right combination of elements to post earnings beat this quarter:
The Zacks Consensus Estimate for LAC’s earnings for the fourth quarter is currently pegged at a loss of 25 cents.
Newmont Corporation (NEM - Free Report) , which is scheduled to release earnings on Feb 23, has an Earnings ESP of +11.41% and carries a Zacks Rank #3.
The Zacks Consensus Estimate for Newmont’s fourth-quarter earnings has been revised 5% upward in the past 60 days. The consensus estimate for NEM’s earnings for the quarter is pegged at 42 cents.
Quaker Chemical Corporation (KWR - Free Report) , which is scheduled to release fourth-quarter earnings on Feb 23, has an Earnings ESP of +7.38% and carries a Zacks Rank #2.
The Zacks Consensus Estimate for KWR’s earnings for the quarter is pegged at $1.22.
Image: Bigstock
Celanese (CE) to Report Q4 Earnings: What's in the Offing?
Celanese Corporation (CE - Free Report) is set to release fourth-quarter 2022 results after the closing bell on Feb 23.
The company surpassed Zacks Consensus Estimate for earnings in two of the last four quarters while missing it twice. It has a trailing four-quarter earnings surprise of around 7.2% on average. It posted a negative earnings surprise of 1% in the last reported quarter.
Celanese is expected to have faced headwinds from weaker volumes, consumer de-stocking and weak demand in Europe and Asia. However, the company is likely to have gained from improved pricing.
Celanese’s shares have lost 17.4% in the past year compared with the industry’s decline of 12.8%.
Image Source: Zacks Investment Research
What Do the Estimates Say?
The company expects adjusted earnings per share for the fourth quarter to be between $1.50 and $2.00.
The Zacks Consensus Estimate for sales for the to-be-reported quarter is currently pegged at $2,415 million, which suggests a rise of 6.2% from the year-ago reported number.
The Zacks Consensus Estimate for net sales of CE’s Acetate Tow (AT) segment for the fourth quarter is $125 million, implying a decline of 3.1% year over year. The consensus estimate for its Engineered Materials (EM) segment is currently pegged at $1,094 million, which indicates a 54.7% rise from the prior year’s levels. The consensus mark for CE’s Acetyl Chain (AC) segment is $1,123 million, down 11.9% on a sequential basis.
Some Factors to Watch
Celanese is expected to have gained from stable demand in end markets in the United States for its AC segment. However, a decline in volumes due to a fall in seasonal demand, consumer de-stocking and weak demand in Europe and Asia and certain end markets are expected to have put a dent in its EM and AC segment.
Also, CE is expected to have witnessed an improvement in acetic acid pricing on a sequential basis. The AT segment is likely to have been hurt by cost inflation, which is expected to have been mitigated by a rise in volumes and improved pricing. Also, CE might have faced headwinds from raw materials, energy and logistic cost inflation in the fourth quarter. Higher costs are expected to have been a drag on its fourth-quarter margins.
Zacks Model
Our proven model does not conclusively predict an earnings beat for Celanese this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here.
Earnings Beat: Earnings ESP for Celanese is -7.75%. The Zacks Consensus Estimate for earnings for the fourth quarter is currently pegged at $1.56. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Celanese currently carries a Zacks Rank #3.
Celanese Corporation Price and EPS Surprise
Celanese Corporation price-eps-surprise | Celanese Corporation Quote
Stocks That Warrant a Look
Here are some companies in the basic materials space you may want to consider, as our model shows these have the right combination of elements to post earnings beat this quarter:
Lithium Americas Corp. (LAC - Free Report) , which is set to release earnings on Mar 15, has an Earnings ESP of +48.68% and carries a Zacks Rank #3. You can see the complete list of today’s Zacks Rank #1 stocks here.
The Zacks Consensus Estimate for LAC’s earnings for the fourth quarter is currently pegged at a loss of 25 cents.
Newmont Corporation (NEM - Free Report) , which is scheduled to release earnings on Feb 23, has an Earnings ESP of +11.41% and carries a Zacks Rank #3.
The Zacks Consensus Estimate for Newmont’s fourth-quarter earnings has been revised 5% upward in the past 60 days. The consensus estimate for NEM’s earnings for the quarter is pegged at 42 cents.
Quaker Chemical Corporation (KWR - Free Report) , which is scheduled to release fourth-quarter earnings on Feb 23, has an Earnings ESP of +7.38% and carries a Zacks Rank #2.
The Zacks Consensus Estimate for KWR’s earnings for the quarter is pegged at $1.22.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.