Celanese Corporation (CE) on Q1 2023 Results - Earnings Call Transcript
Operator: Greetings, and welcome to the Celanese First Quarter 2023 Earnings Call and Webcast. [Operator Instructions]. At this time, I'd like to turn the call over to Brandon Ayache, Vice President of Investor Relations. Thank you. You may begin. Brandon Ayache: Thank you, Darryl. Welcome to the Celanese Corporation first quarter 2023 earnings conference call. My name is Brandon Ayache, Vice President of Investor Relations. And with me today on the call are Lori Ryerkerk, Chairman of the Board and Chief Executive Officer; and Scott Richardson, Chief Financial Officer. Celanese distributed its first quarter earnings release via Business Wire and posted prepared comments on our Investor Relations website yesterday afternoon. As a reminder, we'll discuss non-GAAP financial measures today. You can find definitions of these measures as well as reconciliations to the comparable GAAP measures on our website. Today's presentation will also include forward-looking statements. Please review the cautionary language regarding forward-looking statements, which can be found at the end of both the press release and prepared comments. Form 8-K reports containing all of these materials have also been submitted to the SEC. Since we published our prepared comments yesterday, we'll go ahead and ask you, Darryl to open it up for questions. Operator: [Operator Instructions] Our first questions come from the line of Michael Leithead with Barclays. Operator: Our next question has come from the line of Jeff Zekauskas with JP Morgan. Operator: Our next questions come from the line of Ghansham Panjabi with Baird. Operator: Our next question has come from the line of Michael Sison with Wells Fargo. Operator: Our next questions come from the line of Matthew DeYoe with Bank of America. Operator: Our next questions come from the line of Josh Spector with UBS. Operator: Our next questions come from the line of Kevin McCarthy with Vertical Research Partners. Operator: Our next questions come from the line of John McNulty with BMO Capital Markets. Operator: Our next questions come from the line of Frank Mitsch with Fermium Research. Operator: Our next questions come from the line of Vincent Andrews with Morgan Stanley. Operator: Our next questions come from the line of Arun Viswanathan with RBC Capital Markets. Operator: Come from the line of Hassan Ahmed with Alembic Global. Operator: Our next questions come from the line of Jaideep Pandya with On Field Research. Brandon Ayache: Darryl, we'll take 1 more question, please. Operator: Our next question comes from the line of John Roberts with Credit Suisse. Operator: Thank you. There are no further questions at this time. I'd like to hand the call back over to Brandon Ayache for any closing remarks. Brandon Ayache: Thank you. We'd like to thank everyone for listening in today. As always, we're available after the call for any follow-up questions you may have. Darryl, please go ahead and close up the call. Operator: Thank you. This does conclude today's teleconference. We appreciate your participation. You may disconnect your lines at this time. Enjoy the rest of your day.
Evercore Trims Celanese Price Target to $75, Sees Tactical Upside Ahead of Q1 Print
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 Trims Celanese Price Target to $75, Sees Tactical Upside Ahead of Q1 Print
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's Upcoming Earnings Report: A Financial Overview
- Wall Street analysts estimate Celanese's earnings per share (EPS) to be $1.25, with projected revenue of $2.36 billion.
- Analysts expect a decline in earnings for the quarter ended December 2024, with a consensus EPS estimate of $1.20.
- The company's financial health is highlighted by a price-to-earnings (P/E) ratio of 6.55 and a debt-to-equity ratio of 1.82.
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's Upcoming Earnings Report: A Financial Overview
- Wall Street analysts estimate Celanese's earnings per share (EPS) to be $1.25, with projected revenue of $2.36 billion.
- Analysts expect a decline in earnings for the quarter ended December 2024, with a consensus EPS estimate of $1.20.
- The company's financial health is highlighted by a price-to-earnings (P/E) ratio of 6.55 and a debt-to-equity ratio of 1.82.
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 Downgraded Amid Debt Concerns and Market Challenges
BMO Capital analysts downgraded Celanese (NYSE:CE) from Market Perform to Underperform, lowering their price target on the stock from $138.00 to $76.00. This shift came after evaluating the company’s financial outlook following its highly leveraged acquisition of the Mobility & Materials (M&M) business.
The increased debt from the acquisition, combined with rising capacity in Celanese’s key markets and a weaker-than-expected macroeconomic environment, has tilted the company’s risk-reward balance unfavorably for equity holders, even after a recent decline in stock value. The need for Celanese to prioritize its debt obligations over equity returns adds further pressure on shareholder value. Additionally, concerns about potential risks to 2025 financial projections contributed to BMO’s decision to revise the stock’s rating and reduce its target price.
Celanese Downgraded Amid Debt Concerns and Market Challenges
BMO Capital analysts downgraded Celanese (NYSE:CE) from Market Perform to Underperform, lowering their price target on the stock from $138.00 to $76.00. This shift came after evaluating the company’s financial outlook following its highly leveraged acquisition of the Mobility & Materials (M&M) business.
The increased debt from the acquisition, combined with rising capacity in Celanese’s key markets and a weaker-than-expected macroeconomic environment, has tilted the company’s risk-reward balance unfavorably for equity holders, even after a recent decline in stock value. The need for Celanese to prioritize its debt obligations over equity returns adds further pressure on shareholder value. Additionally, concerns about potential risks to 2025 financial projections contributed to BMO’s decision to revise the stock’s rating and reduce its target price.
BMO Capital Lowers Celanese Price Target, Cites Ongoing Macro Challenges
BMO Capital analysts adjusted their price target for Celanese (NYSE:CE) to $138 from $142 while maintaining a Market Perform rating on the stock. The analysts acknowledged that Celanese is actively utilizing all available strategies to navigate a challenging macroeconomic and operational environment, including supplier issues. However, they noted that these efforts have necessitated further downward adjustments in the company's 2024 forecasts.
Looking ahead to 2025, the analysts expressed caution, suggesting that without a significant macroeconomic recovery, current market expectations may still be set too high. Despite this, they indicated that the risk-reward profile for Celanese is improving. BMO emphasized the need for greater clarity on the 2025 outlook and a clearer path to achieving and exceeding targets before adopting a more positive stance on the stock.
