Insights into Celanese's Upcoming Earnings
Celanese (NYSE:CE) is preparing to release its quarterly earnings on Monday, 2025-05-05. Here's a brief overview of what investors should keep in mind before the announcement.
Analysts expect Celanese to report an earnings per share (EPS) of $0.39.
Celanese bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.
New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).
Historical Earnings Performance
The company's EPS beat by $0.25 in the last quarter, leading to a 21.46% drop in the share price on the following day.
Performance of Celanese Shares
Shares of Celanese were trading at $45.4 as of May 01. Over the last 52-week period, shares are down 70.54%. Given that these returns are generally negative, long-term shareholders are likely a little upset going into this earnings release.
Analyst Insights on Celanese
For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Celanese.
Analysts have provided Celanese with 19 ratings, resulting in a consensus rating of Neutral. The average one-year price target stands at $60.37, suggesting a potential 32.97% upside.
Analyzing Ratings Among Peers
In this comparison, we explore the analyst ratings and average 1-year price targets of Element Solutions, Balchem and Sensient Technologies, three prominent industry players, offering insights into their relative performance expectations and market positioning.
- Analysts currently favor an Buy trajectory for Element Solutions, with an average 1-year price target of $26.89, suggesting a potential 40.77% downside.
- Analysts currently favor an Buy trajectory for Balchem, with an average 1-year price target of $185.0, suggesting a potential 307.49% upside.
- Analysts currently favor an Outperform trajectory for Sensient Technologies, with an average 1-year price target of $93.0, suggesting a potential 104.85% upside.
Insights: Peer Analysis
In the peer analysis summary, key metrics for Element Solutions, Balchem and Sensient Technologies are highlighted, providing an understanding of their respective standings within the industry and offering insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Celanese | Neutral | -7.75% | $539M | -30.75% |
| Element Solutions | Buy | 3.25% | $250.50M | 4.00% |
| Balchem | Buy | 4.53% | $88.17M | 3.14% |
| Sensient Technologies | Outperform | 4.23% | $119.42M | 3.20% |
Key Takeaway:
Celanese ranks at the bottom for Revenue Growth and Gross Profit, with negative growth and profit margin. It also has the lowest Return on Equity among its peers. Overall, Celanese lags behind its peers in financial performance metrics.
Discovering Celanese: A Closer Look
Celanese is one of the world's largest producers of acetic acid and its downstream derivative chemicals, which are used in various end markets, including coatings and adhesives. The company is also one of the largest producers of specialty polymers, which are used in the automotive, electronics, medical, building, and consumer end markets. The company also makes cellulose derivatives used in cigarette filters.
Celanese's Economic Impact: An Analysis
Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.
Negative Revenue Trend: Examining Celanese's financials over 3 months reveals challenges. As of 31 December, 2024, the company experienced a decline of approximately -7.75% in revenue growth, reflecting a decrease in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Materials sector.
Net Margin: Celanese's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of -80.76%, the company may face hurdles in effective cost management.
Return on Equity (ROE): Celanese's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of -30.75%, the company may face hurdles in achieving optimal financial returns.
Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of -7.85%, the company may need to address challenges in generating satisfactory returns from its assets.
Debt Management: Celanese's debt-to-equity ratio stands notably higher than the industry average, reaching 2.5. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.
To track all earnings releases for Celanese visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.