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Celanese's (CE) Earnings and Revenues Miss Estimates in Q4
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Celanese Corporation (CE - Free Report) reported earnings from continuing operations of $7.03 per share in the fourth quarter of 2022, up 46% from $4.83 reported in the prior-year quarter.
Adjusted earnings in the fourth quarter were $1.44 per share, down from $4.91 reported in the prior year. It lagged the Zacks Consensus Estimate of $1.56.
Revenues of $2,348 million increased roughly 3.2% year over year, but trailed the Zacks Consensus Estimate of $2,414.9 million.
The company witnessed growth in pricing and productivity year over year in 2022, which helped it offset higher raw material, energy and supply chain costs. Destocking and weak demand in Asia due to the impacts of COVID and challenging conditions in Europe also weighed in on the company’s performance in the reported quarter.
Celanese Corporation Price, Consensus and EPS Surprise
Net sales in the Engineered Materials unit were $1,237 million in the reported quarter, up around 75% year over year. The segment witnessed higher volumes on a sequential comparison basis while pricing fell in the quarter. Volumes increased 34% and pricing decreased 1% sequentially.
The Acetyl Chain segment posted net sales of $1,135 million, down roughly 29% year over year. The segment witnessed a 9% decline in volume and prices fell 10% sequentially in the fourth quarter.
FY22 Results
Earnings, as adjusted, for full-year 2022 were $15.88 per share compared with $18.12 a year ago. Net sales rose 13.3% to $9,673 million.
Financials
Celanese ended the quarter with cash and cash equivalents of $1,508 million, up roughly 181% year over year. Long-term debt was up around 321% to $13,373 million.
Celanese generated an operating cash flow of $541 million and a free cash flow of $395 million in the fourth quarter. Capital expenditures amounted to $543 million in 2022.
The company also returned $297 million to shareholders through dividend payouts during the year.
Outlook
Celanese sees adjusted earnings of $1.50-$1.75 per share for the first quarter of 2023. The projection includes the expected roughly 30 cents impact from the Mobility & Materials (M&M) amortization.
Based on the current order books, the company expects an upward trend in its quarterly earnings through 2023, backed by improvement in demand and the realization of synergies from the M&M acquisition.
Price Performance
Celanese’s shares have declined 18.7% in the past year compared with a 14.7% fall of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Celanese currently carries a Zacks Rank #3 (Hold).
ATI’s shares have gained 58.8% in the past year. The Zacks Consensus Estimate for ATI’s current-year earnings has been revised 1.9% upward in the past 60 days. The company has an earnings growth rate of 9% for the current year.
ATI topped Zacks Consensus Estimate in all the last four quarters. It delivered a trailing four-quarter earnings surprise of 32.4% on average.
Nucor’s shares have gained 25.5% in the past year. The Zacks Consensus Estimate for NUE’s current-year earnings has been revised 13.3% upward in the past 60 days.
Nucor topped Zacks Consensus Estimate in all the last four quarters. It delivered a trailing four-quarter earnings surprise of 7.7% on average.
Carpenter Technology’s shares have gained 23.4% in the past year. The company has an earnings growth rate of 199% for the current year.
CRS topped Zacks Consensus Estimate in all of the last four quarters. It delivered a trailing four-quarter earnings surprise of 33.6% on average.
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Celanese's (CE) Earnings and Revenues Miss Estimates in Q4
Celanese Corporation (CE - Free Report) reported earnings from continuing operations of $7.03 per share in the fourth quarter of 2022, up 46% from $4.83 reported in the prior-year quarter.
Adjusted earnings in the fourth quarter were $1.44 per share, down from $4.91 reported in the prior year. It lagged the Zacks Consensus Estimate of $1.56.
Revenues of $2,348 million increased roughly 3.2% year over year, but trailed the Zacks Consensus Estimate of $2,414.9 million.
The company witnessed growth in pricing and productivity year over year in 2022, which helped it offset higher raw material, energy and supply chain costs. Destocking and weak demand in Asia due to the impacts of COVID and challenging conditions in Europe also weighed in on the company’s performance in the reported quarter.
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 $1,237 million in the reported quarter, up around 75% year over year. The segment witnessed higher volumes on a sequential comparison basis while pricing fell in the quarter. Volumes increased 34% and pricing decreased 1% sequentially.
The Acetyl Chain segment posted net sales of $1,135 million, down roughly 29% year over year. The segment witnessed a 9% decline in volume and prices fell 10% sequentially in the fourth quarter.
FY22 Results
Earnings, as adjusted, for full-year 2022 were $15.88 per share compared with $18.12 a year ago. Net sales rose 13.3% to $9,673 million.
Financials
Celanese ended the quarter with cash and cash equivalents of $1,508 million, up roughly 181% year over year. Long-term debt was up around 321% to $13,373 million.
Celanese generated an operating cash flow of $541 million and a free cash flow of $395 million in the fourth quarter. Capital expenditures amounted to $543 million in 2022.
The company also returned $297 million to shareholders through dividend payouts during the year.
Outlook
Celanese sees adjusted earnings of $1.50-$1.75 per share for the first quarter of 2023. The projection includes the expected roughly 30 cents impact from the Mobility & Materials (M&M) amortization.
Based on the current order books, the company expects an upward trend in its quarterly earnings through 2023, backed by improvement in demand and the realization of synergies from the M&M acquisition.
Price Performance
Celanese’s shares have declined 18.7% in the past year compared with a 14.7% fall of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Celanese currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks to consider in the basic materials space are ATI Inc. (ATI - Free Report) , Nucor Corporation (NUE - Free Report) and Carpenter Technology Corporation (CRS - Free Report) , ATI and NUE currently sport a Zacks Rank #1 (Strong Buy), while CRS carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
ATI’s shares have gained 58.8% in the past year. The Zacks Consensus Estimate for ATI’s current-year earnings has been revised 1.9% upward in the past 60 days. The company has an earnings growth rate of 9% for the current year.
ATI topped Zacks Consensus Estimate in all the last four quarters. It delivered a trailing four-quarter earnings surprise of 32.4% on average.
Nucor’s shares have gained 25.5% in the past year. The Zacks Consensus Estimate for NUE’s current-year earnings has been revised 13.3% upward in the past 60 days.
Nucor topped Zacks Consensus Estimate in all the last four quarters. It delivered a trailing four-quarter earnings surprise of 7.7% on average.
Carpenter Technology’s shares have gained 23.4% in the past year. The company has an earnings growth rate of 199% for the current year.
CRS topped Zacks Consensus Estimate in all of the last four quarters. It delivered a trailing four-quarter earnings surprise of 33.6% on average.