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Methanex (MEOH) Q3 Loss Lower than Expected, Sales Beat
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Chemical maker Methanex Corporation (MEOH - Free Report) recorded net loss (attributable to Methanex shareholders) of $11 million or 12 cents per share in the third quarter of 2016 as against a profit of $78 million or 54 cents per share logged a year ago.
Loss per share was narrower than the Zacks Consensus Estimate of a loss of 21 cents.
Adjusted EBITDA for the reported quarter of 2016 was $74 million compared with $95 million in the year-ago quarter. The adjusted EBITDA in the reported quarter reflects the impact of higher average realized methanol pricing and higher sales of produced methanol compared with the sequentially prior quarter.
Production for the third quarter of 2016 was 1,749,000 tons compared with 1,259,000 tons in the year-ago quarter.
Revenues dipped roughly 3.2% year over year to $510 million in the reported quarter, but beat the Zacks Consensus Estimate of $505 million. Shares of Methanex closed roughly 0.6% higher at $37.79 on Oct 27.
Financials
Cash flows from operating activities in the third quarter of 2016 were $74 million compared with $134 million for the prior-year quarter.
Outlook
Methanex is seeing healthy global demand and estimates year-over-year demand growth at 10% as of Sep 30, 2016. The company’s planned capital maintenance expenditure program directed towards maintenance, turnarounds and catalyst changes for existing operations, including its 63.1% share of Atlas, is anticipated to be about $100 million from Oct 1, 2016 to the end of 2017.
Newmont has an expected earnings growth rate of 82.8% for the current year.
Pershing Gold has an expected earnings growth rate of 26.3% for the current year.
Eldorado Gold has an expected earnings growth rate of 120% for the current year.
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Methanex (MEOH) Q3 Loss Lower than Expected, Sales Beat
Chemical maker Methanex Corporation (MEOH - Free Report) recorded net loss (attributable to Methanex shareholders) of $11 million or 12 cents per share in the third quarter of 2016 as against a profit of $78 million or 54 cents per share logged a year ago.
Loss per share was narrower than the Zacks Consensus Estimate of a loss of 21 cents.
Adjusted EBITDA for the reported quarter of 2016 was $74 million compared with $95 million in the year-ago quarter. The adjusted EBITDA in the reported quarter reflects the impact of higher average realized methanol pricing and higher sales of produced methanol compared with the sequentially prior quarter.
Production for the third quarter of 2016 was 1,749,000 tons compared with 1,259,000 tons in the year-ago quarter.
Revenues dipped roughly 3.2% year over year to $510 million in the reported quarter, but beat the Zacks Consensus Estimate of $505 million.
Shares of Methanex closed roughly 0.6% higher at $37.79 on Oct 27.
Financials
Cash flows from operating activities in the third quarter of 2016 were $74 million compared with $134 million for the prior-year quarter.
Outlook
Methanex is seeing healthy global demand and estimates year-over-year demand growth at 10% as of Sep 30, 2016. The company’s planned capital maintenance expenditure program directed towards maintenance, turnarounds and catalyst changes for existing operations, including its 63.1% share of Atlas, is anticipated to be about $100 million from Oct 1, 2016 to the end of 2017.
METHANEX CORP Price, Consensus and EPS Surprise
METHANEX CORP Price, Consensus and EPS Surprise | METHANEX CORP Quote
Zacks Rank
Methanex currently carries a Zacks Rank #3 (Hold).
Some better-ranked companies in the basic materials space include Newmont Mining Company (NEM - Free Report) , Pershing Gold Corporation and Eldorado Gold Corporation (EGO - Free Report) all carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Newmont has an expected earnings growth rate of 82.8% for the current year.
Pershing Gold has an expected earnings growth rate of 26.3% for the current year.
Eldorado Gold has an expected earnings growth rate of 120% for the current year.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>