Celanese Meets on the Top Line, Misses Where It Counts
Celanese (NYS: CE) reported earnings on April 24. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), Celanese met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue increased slightly and GAAP earnings per share increased significantly.
Gross margins shrank, operating margins dropped, and net margins expanded.
Celanese booked revenue of $1.63 billion. The 12 analysts polled by S&P Capital IQ expected a top line of $1.62 billion on the same basis. GAAP reported sales were 2.8% higher than the prior-year quarter's $1.59 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.72. The 16 earnings estimates compiled by S&P Capital IQ predicted $0.77 per share on the same basis. GAAP EPS of $1.15 for Q1 were 28% higher than the prior-year quarter's $0.90 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 16.5%, 560 basis points worse than the prior-year quarter. Operating margin was 5.9%, 570 basis points worse than the prior-year quarter. Net margin was 11.2%, 230 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.83 billion. On the bottom line, the average EPS estimate is $1.62.
Next year's average estimate for revenue is $7.06 billion. The average EPS estimate is $4.74.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 343 members out of 371 rating the stock outperform, and 28 members rating it underperform. Among 91 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 87 give Celanese a green thumbs-up, and four 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 $57.18.
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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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