The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Celanese beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew, and GAAP earnings per share increased significantly.
Gross margins dropped, operating margins dropped, net margins increased.
Celanese logged revenue of $1.61 billion. The 10 analysts polled by S&P Capital IQ foresaw net sales of $1.56 billion. Sales were 7.1% higher than the prior-year quarter's $1.51 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.58. The 10 earnings estimates compiled by S&P Capital IQ averaged $0.56 per share on the same basis. GAAP EPS of $0.60 for Q4 were 65% higher than the prior-year quarter's $0.37 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 16.9%, 390 basis points worse than the prior-year quarter. Operating margin was 6.1%, 370 basis points worse than the prior-year quarter. Net margin was 5.9%, 210 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.69 billion. On the bottom line, the average EPS estimate is $0.94.
Next year's average estimate for revenue is $7.03 billion. The average EPS estimate is $4.85.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 345 members out of 373 rating the stock outperform, and 28 members rating it underperform. Among 101 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 96 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 $52.45.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.