Celanese to Report Q3 Earnings: What's in the Offing for the Stock?

Celanese Corporation CE is scheduled to release third-quarter 2024 results after the closing bell on Nov. 4.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.The company surpassed Zacks Consensus Estimate for earnings in two of the last four quarters and missed twice. CE delivered a trailing four-quarter earnings surprise of around 1.3% on average. Celanese's investment in high-return organic projects, cost-cutting initiatives and acquisition synergies are likely to have contributed to its third-quarter performance. CE is expected to have faced headwinds from sluggish demand in certain end markets as well as pricing pressure.CE stock has gained 10.8% in the past year against the Zacks Chemicals Specialty  industry’s 1.4% rise.  Image Source: Zacks Investment ResearchLet’s see how things are shaping up for the upcoming announcement.What Do Celanese’s Revenue Estimates Say?The Zacks Consensus Estimate for sales for the to-be-reported quarter is currently pegged at $2,685 million, which implies a decline of 1.4% from the year-ago reported number.Our estimate for Celanese’s Engineered Materials division’s revenues is pegged at $1,609.5 million, suggesting a rise of 5.3% year over year. The same for the Acetyl Chain unit’s revenues is $1,162.1 million, indicating a fall of 4.8%.Factors at Play for CE StockCelanese's strategic acquisitions, productivity initiatives and investments in organic projects are expected to have aided its performance in the third quarter. Celanese's acquisitions are expected to generate opportunities for future growth, investment and synergy. Its acquisition of the majority of DuPont's Mobility & Materials ("M&M") division has enabled it to expand its presence in high-value applications. CE anticipates incremental M&M synergies of at least $150 million in 2024. The Engineered Materials unit is expected to have gained from incremental synergies in the third quarter.Celanese is also focused on implementing its productivity programs, which include the implementation of many cost-cutting capital projects. Productivity initiatives are likely to have supported its profits in the September quarter. The company is taking steps to implement strategic initiatives, factoring in the volatility and unpredictability of the current market landscape and competitive climate. These initiatives include improving its commercial teams, adjusting production and inventory levels to meet current demand, implementing cost-cutting measures and optimizing cash flow. These activities are expected to generate significant cash and sustain earnings growth.Celanese, earlier this year, completed the start-up of a new 1.3-million-ton Clear Lake acetic acid expansion unit. The Clear Lake expansion is expected to have contributed to its margins in the third quarter.CE is facing headwinds due to weaker demand in some of its end markets. Demand remains sluggish in industrial and consumer goods end markets.  CE is seeing weak demand in markets including paint, coatings and building & construction. Demand in Europe and Asia is also expected to have remained subdued in the third quarter. The company's volumes are likely to have been impacted by a slower global demand recovery. Celanese is also being challenged by significant competition. Competitive pressure is hurting its prices as witnessed in the second quarter. The pricing pressure is likely to have continued in the third quarter due to the challenging competitive dynamics.Celanese Corporation Price and EPS Surprise Celanese Corporation price-eps-surprise | Celanese Corporation QuoteWhat Our Model Unveils for CE StockOur proven model does not conclusively predict an earnings beat for Celanese this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here.Earnings ESP: Earnings ESP for CE is -2.88%. The Zacks Consensus Estimate for earnings for the third quarter is currently pegged at $2.84. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.Zacks Rank: CE currently carries a Zacks Rank #5 (Strong Sell).Basic Materials Stocks That Warrant a LookHere are some companies in the basic materials space you may want to consider as our model shows they have the right combination of elements to post an earnings beat this quarter:DuPont de Nemours, Inc. DD, slated to release earnings on Nov. 5, has an Earnings ESP of +1.00% and carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.The consensus mark for DD’s third-quarter earnings is currently pegged at $1.03.Kinross Gold Corporation KGC, scheduled to release third-quarter earnings on Nov. 5, has an Earnings ESP of +8.76%.The Zacks Consensus Estimate for Kinross Gold's earnings for the third quarter is currently pegged at 17 cents. KGC currently carries a Zacks Rank #1. Methanex Corporation MEOH, scheduled to release earnings on Nov. 6, has an Earnings ESP of +53.67% and carries a Zacks Rank #3. The consensus estimate for MEOH’s earnings for the third quarter is currently pegged at 44 cents.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report DuPont de Nemours, Inc. (DD): Free Stock Analysis Report Kinross Gold Corporation (KGC): Free Stock Analysis Report Methanex Corporation (MEOH): Free Stock Analysis Report Celanese Corporation (CE): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks