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What: Shares of chemicals company Celanese Corporation jumped 15% today after reporting better-than-expected first-quarter earnings on Thursday.
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So what: Sales in the quarter dropped 15% to $1.45 billion, but it was the bottom line that impressed investors. Net income increased 20% to $236 million and on an adjusted basis earnings were $1.72 per share, topping estimates of $1.32 from Wall Street. To top it off, management increased its earnings outlook for 2015 to $5.60 to $5.90 per share.
Now what: Macro headwinds like an uncertain economy and strong U.S. dollar have been a concern for Celanese but strong performance in Materials Solutions and the Acetyl Chain have overcome those challenges. That's why management was able to increase guidance for the year. At 11.4 times earnings, I think shares still have room to run higher given the strong profitability and momentum as the year goes on.
The article Why Shares of Celanese Corporation Popped 15% Today originally appeared on Fool.com.
Travis Hoium has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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