Celanese Beats Expectations but Takes a Step Back Anyway
Celanese (NYS: CE) reported earnings today. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Celanese beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew, and GAAP earnings per share increased significantly.
Gross margins dropped, operating margins dropped, net margins increased.
Celanese logged revenue of $1.61 billion. The 10 analysts polled by S&P Capital IQ foresaw net sales of $1.56 billion. Sales were 7.1% higher than the prior-year quarter's $1.51 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.58. The 10 earnings estimates compiled by S&P Capital IQ averaged $0.56 per share on the same basis. GAAP EPS of $0.60 for Q4 were 65% higher than the prior-year quarter's $0.37 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 16.9%, 390 basis points worse than the prior-year quarter. Operating margin was 6.1%, 370 basis points worse than the prior-year quarter. Net margin was 5.9%, 210 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.69 billion. On the bottom line, the average EPS estimate is $0.94.
Next year's average estimate for revenue is $7.03 billion. The average EPS estimate is $4.85.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 345 members out of 373 rating the stock outperform, and 28 members rating it underperform. Among 101 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 96 give Celanese a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Celanese is outperform, with an average price target of $52.45.
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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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