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Investing.com -- Celanese Corporation (NYSE:CE) shares surged 8% in after-hours trading Thursday after the global chemical and specialty materials company reported third quarter adjusted earnings that exceeded analyst expectations, despite revenue falling short of estimates.
The company reported third quarter adjusted earnings per share of $1.34, beating the analyst consensus of $1.22 by $0.12. However, revenue came in at $2.42 billion, below the consensus estimate of $2.5 billion and down 8.6% compared to the same quarter last year. The revenue decline was driven by decreases of 4% in volume and 1% in price during the quarter.
Celanese shares jumped 8% in after-hours trading Thursday, as investors focused on the earnings beat rather than the revenue miss and disappointing guidance.
"Our strong third quarter free cash flow and Micromax® divestiture announcement clearly demonstrate that we are executing against our strategic action plans," said Scott Richardson, president and chief executive officer. "We have two strong businesses, and the action plans in each are driving value even in a demand environment that remains challenging."
The company generated significant free cash flow of $375 million in the quarter, a substantial improvement compared to -$16 million in the same period last year. Celanese also announced a definitive agreement to divest its Micromax® portfolio to Element Solutions Inc. for approximately $500 million, with proceeds to be used for deleveraging its balance sheet.
Looking ahead, Celanese provided fourth quarter guidance below analyst expectations, forecasting adjusted EPS of $0.85 to $1.00, compared to the consensus estimate of $1.01.
The company reported a U.S. GAAP diluted loss per share of -$12.39 for the quarter, primarily due to non-cash asset impairment losses in the Engineered Materials segment totaling $1.5 billion.
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