Celanese (CE) Up 8.4% Since Last Earnings Report: Can It Continue?

It has been about a month since the last earnings report for Celanese (CE). Shares have added about 8.4% in that time frame, outperforming the S&P 500.But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Celanese due for a pullback? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for Celanese Corporation before we dive into how investors and analysts have reacted as of late.Celanese’s Q2 Earnings & Sales Beat Estimates Amid Low PricesCelanese reported second-quarter 2025 earnings from continuing operations of $1.90 per share, which increased from $1.42 in the prior-year quarter.Adjusted earnings were $1.44 per share, down 39.5% from $2.38 reported a year ago. The bottom line beat the Zacks Consensus Estimate of $1.38.Revenues of roughly $2.53 billion decreased roughly 4.5% year over year. It beat the Zacks Consensus Estimate of $2.50 billion. The decline in net sales was a result of a decrease in pricing and volumes. Prices fell 4% year over year in the quarter.Segment HighlightsNet sales in the Engineered Materials unit were roughly $1.44 billion in the reported quarter, down around 1.7% year over year. It beat our estimate of $1.37 billion. The segment reported an operating profit of $165 million and an adjusted EBIT of $214 million for the second quarter.The Acetyl Chain segment posted net sales of around $1.12 billion, down roughly 7.2% year over year. It beat our estimate of $1.1 billion. The segment generated an operating profit of $154 million and an adjusted EBIT of $196 million in the second quarter.FinancialsCelanese ended the quarter with cash and cash equivalents of roughly $1.17 billion, up roughly 23.3% sequentially. Long-term debt was up 2.5% sequentially to roughly $12.69 billion.Cash provided by operating activities was $410 million and free cash flow was $311 million in the reported quarter.OutlookCelanese projects a softer demand environment across most key end-markets for the second half of the year. The company expects that slowing demand will partly offset the benefits of its cost reduction initiatives, which are anticipated to be realized in the third quarter. Earnings are also expected to face an approximate $25 million sequential negative impact due to ongoing inventory reduction efforts. In response to the uncertain low-demand conditions, Celanese remains focused on maximizing cash flow and maintaining operational agility to align operations with available demand. For the third quarter, the company forecasts adjusted earnings per share in the range of $1.10 to $1.40 and reaffirms its expectation to generate $700 million to $800 million in free cash flow for 2025.How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in estimates revision.The consensus estimate has shifted -27.14% due to these changes.VGM ScoresAt this time, Celanese has a average Growth Score of C, however its Momentum Score is doing a bit better with a B. Following the exact same course, the stock was allocated a grade of B on the value side, putting it in the second quintile for value investors.Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Celanese has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.Performance of an Industry PlayerCelanese is part of the Zacks Chemical - Specialty industry. Over the past month, PPG Industries (PPG), a stock from the same industry, has gained 0.6%. The company reported its results for the quarter ended June 2025 more than a month ago.PPG Industries reported revenues of $4.2 billion in the last reported quarter, representing a year-over-year change of -12.5%. EPS of $2.22 for the same period compares with $2.50 a year ago.PPG Industries is expected to post earnings of $2.12 per share for the current quarter, representing a year-over-year change of -0.5%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.1%.The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for PPG Industries. Also, the stock has a VGM Score of C.Free Report: Profiting from the 2nd Wave of AI ExplosionThe next phase of the AI explosion is poised to create significant wealth for investors, especially those who get in early. It will add literally trillion of dollars to the economy and revolutionize nearly every part of our lives.Investors who bought shares like Nvidia at the right time have had a shot at huge gains.But the rocket ride in the "first wave" of AI stocks may soon come to an end. The sharp upward trajectory of these stocks will begin to level off, leaving exponential growth to a new wave of cutting-edge companies.Zacks' AI Boom 2.0: The Second Wave report reveals 4 under-the-radar companies that may soon be shining stars of AI’s next leap forward.Access AI Boom 2.0 now, absolutely 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 Celanese Corporation (CE): Free Stock Analysis Report PPG Industries, Inc. (PPG): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks