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Why Is Celanese (CE) Up 8.2% Since Last Earnings Report?
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A month has gone by since the last earnings report for Celanese (CE - Free Report) . Shares have added about 8.2% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Celanese due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important catalysts.
Celanese’s Q2 Earnings Beat Estimates on Pricing and Execution
Celanese reported second-quarter 2026 adjusted earnings of $2.45 per share, up 71.3% from $1.43 a year ago. The bottom line surpassed the Zacks Consensus Estimate of $2.21 by 10.9%.
Net sales rose 8.7% year over year to $2.75 billion and beat the consensus estimate of $2.65 billion by 3.7%. Strong pricing and mix, commercial execution and momentum in medical and electronics supported the results. Sequentially, sales increased 18%, reflecting a 4% volume gain and a 14% pricing increase.
Segment Highlights
Engineered Materials recorded net sales of $1.45 billion, up 9% sequentially. It beat our estimate of $1.42 billion. The segment generated an operating profit of $156 million and adjusted EBIT of $234 million. Operating profit declined from $164 million a year ago, while adjusted EBIT increased from $213 million.
The Acetyl Chain posted net sales of $1.33 billion, up 28% sequentially. It topped our estimate of $1.22 billion. The segment delivered an operating profit of $237 million, up from $153 million in the prior-year quarter. Adjusted EBIT increased to $321 million from $195 million.
Financials
Celanese ended the second quarter with cash and cash equivalents of $1.36 billion. Long-term debt was $10.70 billion. Cash provided by operating activities totaled $209 million and free cash flow was $140 million.
Outlook
Celanese expects third-quarter adjusted earnings in the range of $1.35-$1.75 per share. For 2026, the company continues to expect adjusted earnings of approximately $6 per share. Celanese also maintained its full-year free cash flow guidance of $700-$800 million.
Management expects growth initiatives and productivity, portfolio and footprint actions to support performance in 2026. These measures are also intended to create additional earnings growth opportunities in the years ahead while strengthening cash generation and supporting deleveraging.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates.
The consensus estimate has shifted -6.76% due to these changes.
VGM Scores
At this time, Celanese has a average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. However, the stock has a score of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Celanese has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
View the Zacks #1 Rank List
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Why Is Celanese (CE) Up 8.2% Since Last Earnings Report?
A month has gone by since the last earnings report for Celanese (CE - Free Report) . Shares have added about 8.2% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Celanese due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important catalysts.
Celanese’s Q2 Earnings Beat Estimates on Pricing and Execution
Celanese reported second-quarter 2026 adjusted earnings of $2.45 per share, up 71.3% from $1.43 a year ago. The bottom line surpassed the Zacks Consensus Estimate of $2.21 by 10.9%.
Net sales rose 8.7% year over year to $2.75 billion and beat the consensus estimate of $2.65 billion by 3.7%. Strong pricing and mix, commercial execution and momentum in medical and electronics supported the results. Sequentially, sales increased 18%, reflecting a 4% volume gain and a 14% pricing increase.
Segment Highlights
Engineered Materials recorded net sales of $1.45 billion, up 9% sequentially. It beat our estimate of $1.42 billion. The segment generated an operating profit of $156 million and adjusted EBIT of $234 million. Operating profit declined from $164 million a year ago, while adjusted EBIT increased from $213 million.
The Acetyl Chain posted net sales of $1.33 billion, up 28% sequentially. It topped our estimate of $1.22 billion. The segment delivered an operating profit of $237 million, up from $153 million in the prior-year quarter. Adjusted EBIT increased to $321 million from $195 million.
Financials
Celanese ended the second quarter with cash and cash equivalents of $1.36 billion. Long-term debt was $10.70 billion. Cash provided by operating activities totaled $209 million and free cash flow was $140 million.
Outlook
Celanese expects third-quarter adjusted earnings in the range of $1.35-$1.75 per share. For 2026, the company continues to expect adjusted earnings of approximately $6 per share. Celanese also maintained its full-year free cash flow guidance of $700-$800 million.
Management expects growth initiatives and productivity, portfolio and footprint actions to support performance in 2026. These measures are also intended to create additional earnings growth opportunities in the years ahead while strengthening cash generation and supporting deleveraging.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates.
The consensus estimate has shifted -6.76% due to these changes.
VGM Scores
At this time, Celanese has a average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. However, the stock has a score of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Celanese has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.