Celanese Corporation CE reported fourth-quarter 2023 earnings from continuing operations of $6.43 per share, down 8.5% from $7.03 reported in the prior-year quarter. Adjusted earnings in the fourth quarter were $2.24 per share, up from $1.44 reported in the prior year. It lagged the Zacks Consensus Estimate of $2.29. Revenues of $2,569 million increased roughly 9.4% year over year but missed the Zacks Consensus Estimate of $2,610.6 million.
Celanese Corporation Price, Consensus and EPS Surprise
Celanese Corporation price-consensus-eps-surprise-chart | Celanese Corporation Quote
Segment Highlights
Net sales in the Engineered Materials unit were $1,406 million in the reported quarter, up around 13.7% year over year. The figure fell short of our estimate of $1,587.5 million. Sales rose year over year due to higher volumes, which offset lower prices. Pricing declined due to tough competition and product mix challenges in the Americas and Europe. The Acetyl Chain segment posted net sales of $1,181 million, up roughly 4.1% year over year. The figure topped our estimate of $987.1 million. The year-over-year sales growth was driven by higher volumes.
FY23 Results
Earnings, as adjusted, for full-year 2023 were $8.92 per share compared with $15.88 a year ago. Net sales rose 13.1% to $10,940 million.
Financials
Celanese reported $1.9 billion in operating cash flow and $1.3 billion in free cash flow for 2023, with $568 million in capital expenditures. It returned $305 million in cash to shareholders in dividends in 2023.
Outlook
Celanese expects adjusted earnings of $1.75-$2.00 per share for the first quarter of 2024. The projection includes the expected roughly 30 cents impact from the Mobility & Materials (M&M) amortization. The company anticipates a significant rise in earnings per share year over year in 2024 due to M&M synergy capture, Clear Lake acetic acid and methanol expansions, lower interest expenses from deleveraging, and lower inventory costs.
Price Performance
Celanese’s shares have surged 30.8% in the past year compared with a 23.8% rise of the industry.
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Zacks Rank & Other Key Picks
Celanese currently carries a Zacks Rank #2 (Buy). Other top-ranked stocks in the basic materials space include United States Steel Corporation X, Carpenter Technology Corporation CRS and Alpha Metallurgical Resources Inc. AMR. United States Steel carrying a Zacks Rank #1 (Strong Buy). X beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 54.8%. The company’s shares have soared 61.5% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here. Carpenter Technology currently carries a Zacks Rank #1. CRS beat the Zacks Consensus Estimate in three of the last four quarters while matching it once, with the average earnings surprise being 12.2%. The company’s shares have soared 34.6% in the past year. The Zacks Consensus Estimate for AMR’s current-year earnings has been revised upward by 69% in the past 60 days. It currently carries a Zacks Rank #1. AMR delivered a trailing four-quarter earnings surprise of roughly 9.6%, on average. AMR shares are up around 120.1% in a year. 5 Stocks Set to Double. Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2023. Previous recommendations have soared +143.0%, +175.9%, +498.3%, and +673.0%. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report.
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