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The company surpassed Zacks Consensus Estimate for earnings in two of the last four quarters while missing it twice. It has a trailing four-quarter earnings surprise of around 5.4% on average. It posted an earnings surprise of 21% in the last reported quarter.
In the second quarter, Celanese might have encountered challenges due to weak demand and consumer destocking. Despite these headwinds, the company is expected to have benefited from favorable pricing and the positive impact of its acquisitions.
Celanese’s shares have gained 12.1% in a year compared with its industry’s 8.5% rise.
Image Source: Zacks Investment Research
Let’s see how things have shaped up for this announcement.
What Do the Estimates Say?
The Zacks Consensus Estimate for second-quarter sales is currently pegged at $2,838 million, which suggests a rise of 14.2% from the year-ago reported number.
Our estimate for CE's Engineered Materials segment net sales stands at $1,222.9 million for the second quarter, indicating a year-over-year increase of 29%. The same for the Acetyl Chain segment is pegged at $1,262.1 million, suggesting a decline of 19% year over year.
Some Factors at Play
Celanese is expected to have benefited from its cost and productivity initiatives, strategic investments in high-return organic projects and the synergies derived from acquisitions in the second quarter.
Celanese continues to actively pursue acquisitions, which are providing opportunities for additional growth, investment and synergies. The benefits of acquisitions are also expected to have been reflected in its second-quarter performance. Its price increase actions are also expected to have supported margins in the quarter.
However, the company faces challenges from weak demand and destocking. Although conditions improved in China and Europe in the first quarter of 2023, demand moderated in the Americas toward the end of the quarter and is expected to have remained sluggish in the second quarter. Additionally, ongoing destocking in the Americas might have impacted performance in the June quarter. Slower global demand recovery is expected to have affected volumes and pricing.
Our proven model does not conclusively predict an earnings beat for Celanese this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here.
Earnings ESP: Earnings ESP for Celanese is -4.97%. The Zacks Consensus Estimate for second-quarter earnings is currently pegged at $2.46. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Celanese currently carries a Zacks Rank #3.
Stocks That Warrant a Look
Here are some companies in the basic materials space you may want to consider, as our model shows these have the right combination of elements to post earnings beat this quarter:
The Zacks Consensus Estimate for CMP’s fiscal third-quarter earnings is pegged at a loss of 16 cents.
Hudbay Minerals Inc. (HBM - Free Report) , slated to release earnings on Aug 8, has an Earnings ESP of +21.50% and carries a Zacks Rank #3 at present.
The consensus mark for HBM’s second-quarter earnings is currently pegged at 3 cents.
Pan American Silver Corp. (PAAS - Free Report) , which is slated to release its earnings on Aug 9, has an Earnings ESP of +4.62% and a Zacks Rank #3 at present.
The consensus estimate for PAAS’s second-quarter earnings is currently pegged at 8 cents.
Image: Bigstock
Celanese (CE) to Report Q2 Earnings: What's in the Offing?
Celanese Corporation (CE - Free Report) is set to release second-quarter 2023 results after the bell on Aug 7.
The company surpassed Zacks Consensus Estimate for earnings in two of the last four quarters while missing it twice. It has a trailing four-quarter earnings surprise of around 5.4% on average. It posted an earnings surprise of 21% in the last reported quarter.
In the second quarter, Celanese might have encountered challenges due to weak demand and consumer destocking. Despite these headwinds, the company is expected to have benefited from favorable pricing and the positive impact of its acquisitions.
Celanese’s shares have gained 12.1% in a year compared with its industry’s 8.5% rise.
Image Source: Zacks Investment Research
Let’s see how things have shaped up for this announcement.
What Do the Estimates Say?
The Zacks Consensus Estimate for second-quarter sales is currently pegged at $2,838 million, which suggests a rise of 14.2% from the year-ago reported number.
Our estimate for CE's Engineered Materials segment net sales stands at $1,222.9 million for the second quarter, indicating a year-over-year increase of 29%. The same for the Acetyl Chain segment is pegged at $1,262.1 million, suggesting a decline of 19% year over year.
Some Factors at Play
Celanese is expected to have benefited from its cost and productivity initiatives, strategic investments in high-return organic projects and the synergies derived from acquisitions in the second quarter.
Celanese continues to actively pursue acquisitions, which are providing opportunities for additional growth, investment and synergies. The benefits of acquisitions are also expected to have been reflected in its second-quarter performance. Its price increase actions are also expected to have supported margins in the quarter.
However, the company faces challenges from weak demand and destocking. Although conditions improved in China and Europe in the first quarter of 2023, demand moderated in the Americas toward the end of the quarter and is expected to have remained sluggish in the second quarter. Additionally, ongoing destocking in the Americas might have impacted performance in the June quarter. Slower global demand recovery is expected to have affected volumes and pricing.
Celanese Corporation Price and EPS Surprise
Celanese Corporation price-eps-surprise | Celanese Corporation Quote
Zacks Model
Our proven model does not conclusively predict an earnings beat for Celanese this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here.
Earnings ESP: Earnings ESP for Celanese is -4.97%. The Zacks Consensus Estimate for second-quarter earnings is currently pegged at $2.46. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Celanese currently carries a Zacks Rank #3.
Stocks That Warrant a Look
Here are some companies in the basic materials space you may want to consider, as our model shows these have the right combination of elements to post earnings beat this quarter:
Compass Minerals International, Inc. (CMP - Free Report) , slated to release earnings on Aug 8, has an Earnings ESP of +30.16% and carries a Zacks Rank #3 at present. You can see the complete list of today’s Zacks Rank #1 stocks here.
The Zacks Consensus Estimate for CMP’s fiscal third-quarter earnings is pegged at a loss of 16 cents.
Hudbay Minerals Inc. (HBM - Free Report) , slated to release earnings on Aug 8, has an Earnings ESP of +21.50% and carries a Zacks Rank #3 at present.
The consensus mark for HBM’s second-quarter earnings is currently pegged at 3 cents.
Pan American Silver Corp. (PAAS - Free Report) , which is slated to release its earnings on Aug 9, has an Earnings ESP of +4.62% and a Zacks Rank #3 at present.
The consensus estimate for PAAS’s second-quarter earnings is currently pegged at 8 cents.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.