Celanese (NYSE) Hits 12-Month Low Amid Weak Earnings and Analyst Revisions

2 min read | November 06, 2024 03:30 AM PST | By Team Kalkine Media

Celanese (NYSE) Hits 12-Month Low Amid Weak Earnings and Analyst Revisions — Image source: Shutterstock

Headlines

Celanese (NYSE) Hits New 12-Month Low Following Earnings Miss
Dividend Update and Stock Analysts Revisions
Mixed Sentiment from Analysts Amid Weak Performance

Celanese Faces Pressure After Weak Earnings Report

Shares of Celanese (NYSE:CE) dropped significantly following the announcement of underwhelming earnings results, hitting a new 12-month low. The stock reached a low of $98.01 before recovering slightly to trade around $99.00, showing a notable decline from its previous close of $123.50. This drop comes after Celanese reported weaker-than-expected earnings per share (EPS) of $2.44, missing estimates by a substantial margin. The company also saw a slight decline in quarterly revenue, which totaled $2.65 billion, falling short of expectations.

Despite the weaker performance, Celanese maintained a solid net margin of 18.24% and return on equity of 13.60%. However, its year-over-year revenue was down by 2.8%, indicating a challenging environment for the materials sector.

Dividend Announcement and Stockholder Impact

Celanese recently confirmed a quarterly dividend, with $0.70 per share being paid out to stockholders of record. This represents an annualized dividend of $2.80, yielding 3.08%. The dividend is set to be issued on November 13th, with the ex-dividend date being October 30th. The company’s payout ratio stands at 15.94%, reflecting its continued commitment to returning value to stockholders despite the earnings miss.

Analysts React with Caution

Following the earnings report, several analysts adjusted their outlook on Celanese, cutting their target prices. Wells Fargo & Company downgraded its rating from "overweight" to "equal weight" and lowered its price target from $165 to $115. Other analysts followed suit, with Piper Sandler, Barclays, and Deutsche Bank all revising their targets downward. Despite the mixed reviews, a few analysts still maintain a neutral stance on the company’s prospects, indicating uncertainty in the short term.

While the stock has seen revisions from multiple analysts, the sentiment remains cautiously steady for Celanese, with market participants awaiting clearer signs of improvement in upcoming quarters.

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media LLC (Kalkine Media, we or us) and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures/music displayed/used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it, as necessary.