Celanese Corporation (NYSE:CE) Faces Market Challenges Despite Strong Performance

Celanese Corporation (NYSE:CE) shares fell more than 13% intra-day after the global chemical and specialty materials producer issued a downbeat third-quarter forecast that outweighed stronger-than-expected second-quarter results.

The company reported adjusted earnings of $1.44 per share for the second quarter, topping analyst estimates of $1.40. Revenue came in at $2.53 billion, slightly ahead of the $2.5 billion consensus. However, investors reacted to Celanese’s third-quarter guidance of $1.10 to $1.40 per share, well below analyst expectations of $1.73.

The company cited weakening demand across most major end-markets in the second half of the year, with order books building at a slower pace than in the prior quarter. It also projected a sequential earnings headwind of approximately $25 million due to continued inventory reduction efforts.

Second-quarter revenue rose 6% from the prior quarter, supported by a 4% increase in volume and a 3% currency tailwind, partially offset by lower pricing. Compared with the same quarter last year, revenue declined 4.5% from $2.65 billion.

Despite the softer outlook, Celanese reaffirmed its expectation to generate $700 million to $800 million in free cash flow in 2025, highlighting its commitment to cash generation, cost control, and balance sheet deleveraging.

RBC Capital raised its price target on Celanese (NYSE:CE) to $63 from $53 while maintaining a Sector Perform rating, pointing to an improved outlook for fiscal 2025 but cautioning that persistent weakness in automotive builds could weigh on near-term results.

The analysts emphasized that Celanese’s Q2 performance will be key to gauging its success in managing inventories and positioning for stronger growth in the second half of the year. RBC is holding its estimates steady, projecting EPS of $1.33 for Q2, $4.97 for 2025, and $7.10 for 2026, along with EBITDA forecasts of $510 million, $1.975 billion, and $2.20 billion, respectively—figures that already factor in a recovery from Q1 lows.

However, the firm remains skeptical that Celanese can sustainably achieve its target of $2 EPS per quarter until it demonstrates meaningful volume improvements over the next few quarters. RBC’s updated price target reflects a modestly brighter medium-term outlook while acknowledging lingering headwinds that could limit near-term upside.

Evercore ISI lowered its price target on Celanese (NYSE:CE) from $85 to $75, while maintaining an In Line rating, citing near-term opportunity despite medium-term headwinds.

Analysts noted that while macro risks like European auto tariffs and elevated natural gas prices pose challenges, these are unlikely to affect Celanese in the short-term window relevant to this tactical setup.

With first-quarter guidance issued well into the quarter and intra-quarter data showing encouraging signs, Evercore sees the downside as relatively contained. The firm also emphasized a lack of negative pre-announcements, which further supports a potential upside surprise when results are reported.

The call is driven by expectations that investor sentiment is near a trough, and that improving forward visibility, including second-half guidance and operational updates, could reignite interest in the stock.

Additionally, recent debt maturity extensions have eased concerns around leverage, giving Celanese more breathing room as it looks to stabilize operations.

Though the price target was reduced, Evercore views current levels as an attractive risk-reward entry point, particularly for investors looking to capitalize on a short-term rebound in sentiment and valuation.

Evercore ISI lowered its price target on Celanese (NYSE:CE) from $85 to $75, while maintaining an In Line rating, citing near-term opportunity despite medium-term headwinds.

Analysts noted that while macro risks like European auto tariffs and elevated natural gas prices pose challenges, these are unlikely to affect Celanese in the short-term window relevant to this tactical setup.

With first-quarter guidance issued well into the quarter and intra-quarter data showing encouraging signs, Evercore sees the downside as relatively contained. The firm also emphasized a lack of negative pre-announcements, which further supports a potential upside surprise when results are reported.

The call is driven by expectations that investor sentiment is near a trough, and that improving forward visibility, including second-half guidance and operational updates, could reignite interest in the stock.

Additionally, recent debt maturity extensions have eased concerns around leverage, giving Celanese more breathing room as it looks to stabilize operations.

Though the price target was reduced, Evercore views current levels as an attractive risk-reward entry point, particularly for investors looking to capitalize on a short-term rebound in sentiment and valuation.

Celanese Corporation (NYSE:CE) is a global chemical and specialty materials company. It produces a wide range of products used in industries such as automotive, consumer goods, and pharmaceuticals. As a key player in the chemical sector, Celanese competes with companies like Dow Inc. and Eastman Chemical Company. The company is set to release its quarterly earnings on February 18, 2025.

Wall Street analysts estimate Celanese's earnings per share (EPS) to be $1.25, with projected revenue of $2.36 billion. However, analysts expect a decline in earnings for the quarter ended December 2024, with a consensus EPS estimate of $1.20. This suggests a potential decrease in revenue compared to the previous year, as highlighted by the anticipated figures.

The upcoming earnings report could significantly impact Celanese's stock price. If the company surpasses the $1.20 EPS expectation, the stock might trend upward. Conversely, if results fall short, a decline could occur. The sustainability of any price changes will depend on management's discussion of business conditions during the earnings call.

Celanese's financial metrics provide insight into its market valuation. The company has a price-to-earnings (P/E) ratio of 6.55, indicating how the market values its earnings. Its price-to-sales ratio is 0.68, suggesting the stock is valued at less than its annual sales. The enterprise value to sales ratio is 1.87, reflecting the company's total valuation relative to its sales.

The company's financial health is further illustrated by its debt-to-equity ratio of 1.82, showing its reliance on debt financing. The current ratio of 1.37 indicates Celanese's ability to cover short-term liabilities with short-term assets. These metrics, along with an earnings yield of 15.27%, provide a comprehensive view of Celanese's financial standing.

Celanese Corporation (NYSE:CE) is a global chemical and specialty materials company. It produces a wide range of products used in industries such as automotive, consumer goods, and pharmaceuticals. As a key player in the chemical sector, Celanese competes with companies like Dow Inc. and Eastman Chemical Company. The company is set to release its quarterly earnings on February 18, 2025.

Wall Street analysts estimate Celanese's earnings per share (EPS) to be $1.25, with projected revenue of $2.36 billion. However, analysts expect a decline in earnings for the quarter ended December 2024, with a consensus EPS estimate of $1.20. This suggests a potential decrease in revenue compared to the previous year, as highlighted by the anticipated figures.

The upcoming earnings report could significantly impact Celanese's stock price. If the company surpasses the $1.20 EPS expectation, the stock might trend upward. Conversely, if results fall short, a decline could occur. The sustainability of any price changes will depend on management's discussion of business conditions during the earnings call.

Celanese's financial metrics provide insight into its market valuation. The company has a price-to-earnings (P/E) ratio of 6.55, indicating how the market values its earnings. Its price-to-sales ratio is 0.68, suggesting the stock is valued at less than its annual sales. The enterprise value to sales ratio is 1.87, reflecting the company's total valuation relative to its sales.

The company's financial health is further illustrated by its debt-to-equity ratio of 1.82, showing its reliance on debt financing. The current ratio of 1.37 indicates Celanese's ability to cover short-term liabilities with short-term assets. These metrics, along with an earnings yield of 15.27%, provide a comprehensive view of Celanese's financial standing.