Celanese Earnings: Here’s Why the Stock is Falling Now

Celanese Corp. (NYSE:CE) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 3.15%

Celanese Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 23.81% to $1.12 in the quarter versus EPS of $1.47 in the year-earlier quarter.

Revenue: Decreased 1.31% to $1.65 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Celanese Corp. reported adjusted EPS income of $1.12 per share. By that measure, the company missed the mean analyst estimate of $1.16. It missed the average revenue estimate of $1.66 billion.

Quoting Management: “Celanese’s second quarter results reflect the continued success we are having by delivering value-added solutions to our customers in diverse end-use markets and geographic regions as we increased segment income margins to 22.3 percent sequentially in Advanced Engineered Materials, Consumer Specialties and Industrial Specialties. This success was tempered by lower segment income in Acetyl Intermediates as the economies of Asia and Europe demonstrated softer conditions than the first quarter and as we executed a number of plant turnarounds,” said Mark Rohr, chairman and chief executive officer. “Celanese continued to deliver good cash flow results in the second quarter and further increased the cash on our balance sheet and reduced net debt to the lowest quarterly level since March 2005. We are well positioned to pursue our balanced cash deployment strategy.”

Key Stats (on next page)…

Revenue increased 2.99% from $1.61 billion in the previous quarter. EPS decreased 1.75% from $1.14 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $1.11 to a profit $1.2. For the current year, the average estimate has moved up from a profit of $4.38 to a profit of $4.54 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)