Celanese Corporation Just Missed EPS By 61%: Here's What Analysts Think Will Happen Next

Shareholders in Celanese Corporation (NYSE:CE) had a terrible week, as shares crashed 28% to US$91.00 in the week since its latest quarterly results. Statutory earnings per share fell badly short of expectations, coming in at US$1.06, some 61% below analyst forecasts, although revenues were okay, approximately in line with analyst estimates at US$2.6b. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for Celanese

Following the latest results, Celanese's 16 analysts are now forecasting revenues of US$11.0b in 2025. This would be a credible 4.9% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to expand 15% to US$11.60. In the lead-up to this report, the analysts had been modelling revenues of US$11.1b and earnings per share (EPS) of US$12.10 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

The consensus price target held steady at US$140, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Celanese at US$178 per share, while the most bearish prices it at US$115. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Celanese shareholders.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Celanese's revenue growth is expected to slow, with the forecast 3.9% annualised growth rate until the end of 2025 being well below the historical 14% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 4.6% annually. So it's pretty clear that, while Celanese's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Celanese. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at US$140, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Celanese. Long-term earnings power is much more important than next year's profits. We have forecasts for Celanese going out to 2026, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 2 warning signs for Celanese (of which 1 is a bit unpleasant!) you should know about.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.