The 10-second takeaway
For the quarter ended March 31 (Q1), Celanese met expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped slightly. Non-GAAP earnings per share grew significantly. GAAP earnings per share dropped significantly.
Gross margins expanded, operating margins increased, net margins dropped.
Celanese reported revenue of $1.61 billion. The 13 analysts polled by S&P Capital IQ expected revenue of $1.61 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.14. The 18 earnings estimates compiled by S&P Capital IQ averaged $0.79 per share. Non-GAAP EPS of $1.14 for Q1 were 58% higher than the prior-year quarter's $0.72 per share. GAAP EPS of $0.89 for Q1 were 23% lower than the prior-year quarter's $1.15 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 20.7%, 420 basis points better than the prior-year quarter. Operating margin was 11.6%, 570 basis points better than the prior-year quarter. Net margin was 8.8%, 240 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.69 billion. On the bottom line, the average EPS estimate is $1.36.
Next year's average estimate for revenue is $6.59 billion. The average EPS estimate is $4.61.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 348 members out of 378 rating the stock outperform, and 30 members rating it underperform. Among 85 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 80 give Celanese a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Celanese is outperform, with an average price target of $53.33.
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