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Celanese Corporation (CE) - $25 value - yours FREE >>
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Celanese (CE) Authorizes Share Buyback Worth $1 Billion
Celanese Corporation (CE - Free Report) announced that its Board has approved a new $1-billion share repurchase authorization. The authorization reflects roughly 6% of the company’s shares outstanding.
In the first half of this year, the company allocated $500 million to buyback shares under the $1.5 billion share repurchase authorization set up in 2019. The amount was then increased by $500 million in Jul 2020.
As of Jun 30, 2021, around $560 million remained under the current share repurchase authorization which along with this new $1-billion authorization will support future share repurchases.
Celanese ended the first quarter with cash and cash equivalents of $791 million, up around 39% year over year. It generated operating cash flow of $116 million and free cash flow of $19 million in the first quarter. The company also returned $328 million to shareholders through dividend payouts and share repurchases during the quarter.
Shares of Celanese have surged 70.2% in the past year against 17.7% fall of the industry.
Image Source: Zacks Investment Research
Celanese, in its last earnings call, stated that demand for its Engineered Materials and Acetyl Chain products remains strong in most end markets. The company expects adjusted earnings for the second quarter of roughly $4.00 per share, factoring in current industry dynamics, higher inventory costs from Uri, and minimal turnaround requirements. Moreover, Celanese expects adjusted earnings of $12.50-$13.50 per share for 2021.
Celanese Corporation Price and Consensus
Celanese Corporation price-consensus-chart | Celanese Corporation Quote
Zacks Rank & Other Key Picks
Celanese currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the basic materials space are Nucor Corporation (NUE - Free Report) , Olin Corporation (OLN - Free Report) and Cabot Corporation (CBT - Free Report) .
Nucor has a projected earnings growth rate of around 381.7% for the current year. The company’s shares have surged 127.7% in a year. It currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Olin has an expected earnings growth rate of around 506.7% for the current year. The company’s shares have skyrocketed 258% in the past year. It currently sports a Zacks Rank #1.
Cabot has an expected earnings growth rate of around 137.5% for the current fiscal. The company’s shares have surged 48.2% in the past year. It currently flaunts a Zacks Rank #1.