The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Celanese missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share dropped significantly.
Margins shrank across the board.
Celanese booked revenue of $1.61 billion. The 13 analysts polled by S&P Capital IQ hoped for a top line of $1.70 billion on the same basis. GAAP reported sales were 11% lower than the prior-year quarter's $1.81 billion.
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 $0.93. The 16 earnings estimates compiled by S&P Capital IQ averaged $0.90 per share. GAAP EPS of $0.73 for Q3 were 30% lower than the prior-year quarter's $1.05 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 20.1%, 210 basis points worse than the prior-year quarter. Operating margin was 10.5%, 170 basis points worse than the prior-year quarter. Net margin was 7.3%, 190 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.60 billion. On the bottom line, the average EPS estimate is $0.73.
Next year's average estimate for revenue is $6.60 billion. The average EPS estimate is $3.83.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 347 members out of 376 rating the stock outperform, and 29 members rating it underperform. Among 89 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 84 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 $50.49.
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