Celanese (CE) to Report Q3 Earnings: What's in the Cards?
Zacks Investment Research | Oct 19, 2021 12:26AM ET
Celanese (NYSE:CE) Corporation industry .
Let’s see how things are shaping up for this announcement.
h3 What do the Estimates Say?/h3The Zacks Consensus Estimate for Celanese’s revenues in the to-be-reported quarter is pegged at $2,172 million, which suggests year-over-year increase of 53.9%.
The consensus mark for third-quarter net sales in the Engineered Materials unit is currently pegged at $702 million, which calls for a 33.5% year-over-year increase.
The Zacks Consensus Estimate for the Acetate Tow division is pegged at $139 million, which indicates a 7.8% year-over-year increase.
h3 Factors at Play in Q3/h3Celanese is likely to have gained from its productivity actions, investments in high-return organic projects and strategic acquisitions in the quarter to be reported.
The company is also committed toward executing its productivity programs that include the implementation of a number of cost-reduction capital projects.
The company’s strategic actions that include operational improvement as well as cost savings through productivity initiatives and price-increase actions are likely to have contributed to the bottom line in the to-be-reported quarter. Benefits of acquisitions are also expected to get reflected in the company’s third-quarter performance. Celanese is also expected to have gained from improving demand in most of its end markets.
However, the company is expected to have faced headwinds from elevated raw material costs due to supply constraints. It is likely to have faced sustained inflation across many key raw materials as well as supply chain costs in the third quarter. Tight availability of resins, including nylon and glass fiber is expected to have led to a rise in raw material costs in the third quarter. Higher input costs are likely to have hurt margins in the to-be-reported quarter.
The Acetyl Chain segment is anticipated to have encountered challenges from a moderation in the industry pricing. The company might have faced persistent moderation in acetic acid and VAM pricing in China in the third quarter.
The ongoing semiconductor shortage is also affecting automotive production globally. Automotive order patterns of the company are likely to have been affected.
h3 Zacks Model/h3Our proven model does not conclusively predict an earnings beat for Celanese this season. The combination of a positive ALB , scheduled to release earnings on Nov 3, has an Earnings ESP of +8.05% and carries a Zacks Rank #3.
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