Methanex Corporation (MEOH Quick QuoteMEOH - Free Report) recorded profit (attributable to Methanex shareholders) of $169 million or $2.00 per share in the first quarter of 2018. The reported figure increased around 28% from $132 million or $1.46 a year ago and also rose from a profit of $68 million or 81 cents in the previous quarter. 

 

Adjusted (barring one-time items) earnings of $2.03 per share, however, missed the Zacks Consensus Estimate of $2.08.

 

Adjusted EBITDA of the chemical maker in the quarter was $306 million compared with $267 million in the prior-year quarter.

 

Revenues increased roughly 18.8% year over year to $962 million in the first quarter. The company gained from higher methanol prices in the quarter.

 

Production for the first quarter was 1,943,000 tons compared with 1,866,000 tons in the year-ago period.

 

Average realized price for methanol was $402 per ton in the reported quarter, up from $365 per ton a year ago and $350 per ton in the sequentially prior quarter. 

 

 

 

 

Cash flows from operating activities in the reported quarter were $244 million compared with $214 million in the prior-year quarter. Cash and cash equivalents were $371 million at the end of the quarter, down 1.2% year over year. Long-term debt was around $1.45 billion, down roughly 0.8% year over year.

 

 

Methanex’s Chile IV plant is progressing with its restart process and is expected to be complete by third-quarter 2018. With a committed revolving credit facility, strong balance sheet and healthy cash generation capability, the company believes that it is well positioned to meet its financial commitments, execute growth opportunities and return excess cash to shareholders through dividends and share repurchases.

 

 

Shares of Methanex have moved up 38.2% over a year, outperforming the industry’s gain of 8.4%.

 

 

 

 

Methanex carries a Zacks Rank #2 (Buy). 

 

Some other top-ranked stocks in the basic material space are Kronos Worldwide Inc. (KRO Quick QuoteKRO - Free Report) , Celanese Corporation (CE Quick QuoteCE - Free Report) and Arkema SA (ARKAY Quick QuoteARKAY - Free Report) . 

 

Kronos has an expected long-term earnings growth of 5% and sports a Zacks Rank #1 (Strong Buy). Its shares have gained 36.2% over a year. You can see the complete list of today’s Zacks #1 Rank stocks here.

 

Celanese has an expected long-term earnings growth of 8.9% and carries a Zacks Rank #1. Its shares have moved up 26.3% over a year.

 

Arkema has an expected long-term earnings growth of 7.9% and carries a Zacks Rank 2. Its shares have gained 24.6% over a year.

 

 

Zacks has just released a Special Report on the booming investment opportunities of legal marijuana. 

 

Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.