Celanese (CE) Up 0.8% Since Last Earnings Report: Can It Continue?

A month has gone by since the last earnings report for Celanese (CE). Shares have added about 0.8% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Celanese due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.

Celaneses Q2 Earnings and Sales Fall Short of Estimates

Celanese reported second-quarter 2023 earnings from continuing operations of $2 per share, which declined from $4.03 in the prior-year quarter.

Adjusted earnings in the second quarter were $2.17 per share, down 56.5% from $4.99 reported a year ago. The bottom line lagged the Zacks Consensus Estimate of $2.46.

Revenues of $2,795 million increased roughly 12.4% year over year. However, revenues missed the Zacks Consensus Estimate of $2,838.4 million.

Celaneses second-quarter results were impacted by a drop in Acetyl Chain net sales due to slow demand recovery. Strategic initiatives, like boosting volume during industry turnarounds and emphasizing higher-margin downstream derivatives, led to improved margins and sequential earnings growth. In the Engineered Materials segment, market challenges and intense competition led to actions such as production cuts and sales focus shifts. Despite reduced sales, the segment achieved profitability through cost control and synergies.