NYSE$CE

Celanese Corp · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Celanese reported strong Q3 2023 results driven by decisive actions to control costs and strengthen the balance sheet.

Celanese Corporation reported Q3 2023 GAAP diluted earnings per share of $8.70 and adjusted earnings per share of $2.50. Net sales were $2.7 billion, a decrease of 3% from the prior quarter. The company reduced net debt by $758 million and inventory balances by $177 million.

  • Net sales reached $2.7 billion, reflecting a slight decrease from the previous quarter due to pricing adjustments.
  • GAAP diluted earnings per share stood at $8.70, while adjusted earnings per share was $2.50.
  • The company successfully reduced inventory balances by $177 million through reductions in Engineered Materials and Acetyl Chain.
  • Net debt was significantly reduced by $758 million, showcasing a strong commitment to deleveraging.

Headline financials

Total Revenue

$2.72B

Previous: $2.3B+18.3%
EPS (adj)

$2.50

Previous: $3.94-36.5%
Adjusted EBIT

$451M

No prior period
Operating EBITDA

$624M

Previous: $607M+2.8%
Capital Expenditures

-$440M

Previous: -$400M-10.0%
Free Cash Flow

$511M

Previous: -$209M+344.5%
Net Income

$951M

Previous: $191M+397.9%
Operating Income

$842M

Previous: $308M+173.4%
Gross Profit

$673M

Previous: $546M+23.3%
Cash & Equivalents

$1.36B

Previous: $9.67B-86.0%
Total Assets

$25.5B

Previous: $21.3B+19.7%
R&D Expense

$32M

No prior period
Stock-Based Comp

$4M

Previous: $16M-75.0%

Revenue & EPS history

Celanese · Revenue · Quarterly

$2.72B

Q3 2023+18.3%vs Q3 2022
Beat estimate in 5 of 16 quarters(31%)
ActualEstimate

Revenue by segment

Celanese · $2.75B total across 2 segments · Q3 2023

  • Engineered Materials
    $1.53B+64.5%
  • Acetyl Chain
    $1.22B-4.2%

Forward guidance

Celanese anticipates fourth quarter adjusted earnings per share of $2.10 to $2.50, inclusive of approximately $0.30 per share of M&M transaction amortization. Consequently, Celanese anticipates full year adjusted earnings per share at the lower-end of the previous $9.00 to $10.00 range, inclusive of approximately $1.20 per share of M&M transaction amortization.

Tailwinds

  • Controllable actions to support near-term performance.
  • Laying the groundwork for amplified earnings growth when demand returns.
  • Focus on delivering sequential growth in earnings contributions.
  • Positioning to enter 2024 with additional momentum.
  • Improvement in destocking conditions.

Headwinds

  • Volatile and uncertain operating environment.
  • Anticipated cold weather seasonality.
  • M&M transaction amortization of approximately $0.30 per share in Q4.
  • Full year adjusted earnings per share expected at the lower-end of the previous range.
  • Challenging competitive dynamics due to poor demand and raw material deflation.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2023

Historical avgQ3 2023

+0.3%

Avg return

Earnings day

-1.4%

Avg return

5 days after

+1.3%

Avg return

30 days after

56%

41 / 73 earnings

Positive

+16.4%

Q1 2015

Best reaction

-27.1%

Q3 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.6%-13.9%-26.1%
Q4 2025-1.6%-6.1%+2.2%
Q3 2025+14.5%+8.3%+12.5%
Q2 2025-13.1%-10.4%-1.2%
Q1 2025+10.0%+14.4%+21.8%
Q4 2024-21.5%-24.3%-18.3%
Q3 2024-27.1%-32.1%-43.2%
Q2 2024-6.8%-10.0%-7.5%
Q1 2024-0.8%-1.5%-10.0%
Q4 2023-0.5%-1.1%+11.4%
Q3 2023-3.6%-2.0%+16.5%
Q2 2023+1.1%+1.7%+2.4%
Q1 2023-2.9%-4.9%+9.1%
Q4 2022+3.1%+1.8%-11.1%
Q3 2022-2.2%-0.2%+16.1%
Q2 2022-0.5%-5.7%-3.6%
Q1 2022+4.9%+7.3%+13.7%
Q4 2021-4.0%-1.3%-11.5%
Q3 2021+1.2%+3.0%-0.5%
Q2 2021+0.9%+1.7%+1.5%
Q1 2021-0.9%-1.3%+3.5%
Q4 2020+2.3%+4.7%+16.4%
Q3 2020-3.9%-5.6%+14.4%
Q2 2020+2.1%+2.1%+8.2%
Q1 2020+4.0%+0.7%+19.4%
Q4 2019-7.5%-4.1%-16.3%
Q3 2019-1.9%+1.6%+2.1%
Q2 2019+3.0%+3.8%+5.7%
Q1 2019+6.6%+3.2%-4.8%
Q4 2018-1.0%+1.5%+6.3%
Q3 2018-0.1%+0.3%+2.7%
Q2 2018+2.1%+2.9%+4.3%
Q1 2018+6.0%+7.2%+6.7%
Q4 2017+1.1%-0.3%-5.6%
Q3 2017-2.9%-1.6%-3.9%
Q2 2017-1.4%-3.2%+0.4%
Q1 2017-0.1%-0.9%-5.9%
Q4 2016+3.9%+4.3%+6.6%
Q3 2016+9.5%+11.5%+24.2%
Q2 2016-6.4%-9.7%-6.1%
Q1 2016+0.6%
Q4 2015+3.2%
Q3 2015+2.3%
Q2 2015-4.7%
Q1 2015+16.4%
Q4 2014-7.6%
Q3 2014+8.2%
Q2 2014-2.3%
Q1 2014+2.5%
Q4 2013-4.3%
Q3 2013+5.4%
Q2 2013+0.8%
Q1 2013+11.2%
Q4 2012+2.4%
Q3 2012+2.5%
Q2 2012+4.5%
Q1 2012+1.1%
Q4 2011-1.0%
Q3 2011+9.9%
Q2 2011-0.9%
Q1 2011+0.2%
Q4 2010+0.7%
Q3 2010+1.6%
Q2 2010-1.2%
Q1 2009-5.7%
Q1 2010+0.1%
Q4 2007+0.0%
Q4 2009+0.0%
Q3 2008+3.6%
Q3 2009+3.6%
Q4 2008+0.5%
Q2 2009+0.5%
Q2 2008+0.5%

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