Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of chemicals company Celanese Corporation jumped 15% today after reporting better-than-expected first-quarter earnings on Thursday.
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.
This $19 trillion industry could destroy the Internet
One bleeding-edge technology is about to put the World Wide Web to bed. And if you act right away, it could make you wildly rich. Experts are calling it the single largest business opportunity in the history of capitalism... The Economist is calling it "transformative"... But you'll probably just call it "how I made my millions." Don't be too late to the party -- click here for one stock to own when the Web goes dark.
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 .
Copyright © 1995 - 2015 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
