We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Celanese (CE) Q2 Earnings and Sales Fall Short of Estimates
Read MoreHide Full Article
Celanese Corporation (CE - Free Report) reported second-quarter 2024 earnings from continuing operations of $1.42 per share, which declined from $2 in the prior-year quarter.
Adjusted earnings were $2.38 per share, up 9.7% from $2.17 reported a year ago. The bottom line lagged the Zacks Consensus Estimate of $2.80.
Revenues of $2,651 million decreased roughly 5.1% year over year. It missed the Zacks Consensus Estimate of $2,725.7 million. The decline in net sales is a result of a decrease in pricing.
Celanese Corporation Price, Consensus and EPS Surprise
Net sales in the Engineered Materials unit were $1,467 million in the reported quarter, down around 7.4% year over year. It missed our estimate of $1,648.4 million. The segment reported an operating profit of $138 million and an adjusted EBIT of $265 million in the second quarter.
The Acetyl Chain segment posted net sales of $1,202 million, down roughly 2.5% year over year. It beat our estimate of $1,125.1 million. The segment generated an operating profit of $242 million and an adjusted EBIT of $277 million in the second quarter.
Financials
Celanese ended the quarter with cash and cash equivalents of $1,185 million, down roughly 8.5% sequentially. Long-term debt was stable sequentially at $11,058 million.
Cash provided by operating activities was $292 million and free cash flow was $173 million in the reported quarter. Capital expenditures were $105 million.
Outlook
Celanese expects adjusted earnings in the range of $2.75-$3 per share for the third quarter of 2024. Furthermore, based on the impact of the second-quarter force majeure and ongoing demand issues, CE forecasts full-year adjusted earnings per share in the range of $10.25 to $10.75.
Price Performance
Celanese’s shares have gained 10.6% in the past year against a 11.4% decline of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
CE currently carries a Zacks Rank #4 (Sell).
Better-ranked stocks worth a look in the basic materials space include Barrick Gold Corporation (GOLD - Free Report) , Hecla Mining Company (HL - Free Report) and SilverCrest Metals Inc. (SILV - Free Report) .
Barrick is slated to report second-quarter results on Aug 12, before market open. The Zacks Consensus Estimate for GOLD’s earnings is pegged at 26 cents. GOLD beat the consensus in each of the last four quarters, with the average earnings surprise being 18.3%. GOLD currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Hecla, carrying a Zacks Rank #1, is slated to report second-quarter results on Aug 6. The Zacks Consensus Estimate for Hecla's second-quarter earnings is pegged at a penny per share. The stock has gained nearly 0.8% in the past year.
SilverCrest will report results for the second quarter on Aug 7. The Zacks Consensus Estimate for SilverCrest's earnings is pegged at 17 cents. SILV, a Zacks Rank #2 stock, beat the consensus in each of the last four quarters, with the average earnings surprise being 42.4%. The stock has surged nearly 107% in the past year.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Celanese (CE) Q2 Earnings and Sales Fall Short of Estimates
Celanese Corporation (CE - Free Report) reported second-quarter 2024 earnings from continuing operations of $1.42 per share, which declined from $2 in the prior-year quarter.
Adjusted earnings were $2.38 per share, up 9.7% from $2.17 reported a year ago. The bottom line lagged the Zacks Consensus Estimate of $2.80.
Revenues of $2,651 million decreased roughly 5.1% year over year. It missed the Zacks Consensus Estimate of $2,725.7 million. The decline in net sales is a result of a decrease in pricing.
Celanese Corporation Price, Consensus and EPS Surprise
Celanese Corporation price-consensus-eps-surprise-chart | Celanese Corporation Quote
Segment Highlights
Net sales in the Engineered Materials unit were $1,467 million in the reported quarter, down around 7.4% year over year. It missed our estimate of $1,648.4 million. The segment reported an operating profit of $138 million and an adjusted EBIT of $265 million in the second quarter.
The Acetyl Chain segment posted net sales of $1,202 million, down roughly 2.5% year over year. It beat our estimate of $1,125.1 million. The segment generated an operating profit of $242 million and an adjusted EBIT of $277 million in the second quarter.
Financials
Celanese ended the quarter with cash and cash equivalents of $1,185 million, down roughly 8.5% sequentially. Long-term debt was stable sequentially at $11,058 million.
Cash provided by operating activities was $292 million and free cash flow was $173 million in the reported quarter. Capital expenditures were $105 million.
Outlook
Celanese expects adjusted earnings in the range of $2.75-$3 per share for the third quarter of 2024. Furthermore, based on the impact of the second-quarter force majeure and ongoing demand issues, CE forecasts full-year adjusted earnings per share in the range of $10.25 to $10.75.
Price Performance
Celanese’s shares have gained 10.6% in the past year against a 11.4% decline of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
CE currently carries a Zacks Rank #4 (Sell).
Better-ranked stocks worth a look in the basic materials space include Barrick Gold Corporation (GOLD - Free Report) , Hecla Mining Company (HL - Free Report) and SilverCrest Metals Inc. (SILV - Free Report) .
Barrick is slated to report second-quarter results on Aug 12, before market open. The Zacks Consensus Estimate for GOLD’s earnings is pegged at 26 cents. GOLD beat the consensus in each of the last four quarters, with the average earnings surprise being 18.3%. GOLD currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Hecla, carrying a Zacks Rank #1, is slated to report second-quarter results on Aug 6. The Zacks Consensus Estimate for Hecla's second-quarter earnings is pegged at a penny per share. The stock has gained nearly 0.8% in the past year.
SilverCrest will report results for the second quarter on Aug 7. The Zacks Consensus Estimate for SilverCrest's earnings is pegged at 17 cents. SILV, a Zacks Rank #2 stock, beat the consensus in each of the last four quarters, with the average earnings surprise being 42.4%. The stock has surged nearly 107% in the past year.