We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Methanex (MEOH) Q2 Earnings Beat Estimates, Revenues Up Y/Y
Read MoreHide Full Article
Methanex Corporation (MEOH - Free Report) recorded profit (attributable to Methanex shareholders) of $111 million or $1.36 per share in the second quarter of 2018. The figure increased around 32% from $84 million or 89 cents a year ago and also improved from a profit of $169 million or $2.00 in the previous quarter.
Adjusted (barring one-time items) earnings per share in the quarter were $1.75. It beat the Zacks Consensus Estimate of $1.70.
Adjusted EBITDA of the chemical maker in the quarter was $275 million compared with $174 million in the prior-year quarter.
Revenues increased roughly 42% year over year to $950 million in the second quarter. The company gained from higher methanol prices and demand in the quarter.
Production in the second quarter totaled 1,648,000 tons compared with 1,614,000 tons a year ago.
Average realized price for methanol was $405 per ton in the reported quarter, up from $327 per ton a year ago and $402 per ton in the preceding quarter.
Methanex Corporation Price, Consensus and EPS Surprise
Cash flow from operating activities in the reported quarter was $290 million compared with $243 million in the prior-year quarter. Cash and cash equivalents were $320 million at the end of the quarter, down 11% year over year. Long-term debt was around $1.46 billion, down roughly 1.3% year over year.
Outlook
Methanex’s Chile IV plant is progressing with its restart process which is expected to be complete by the end of 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.
Price Performance
Shares of Methanex have moved up 54.1% over a year, outperforming the industry’s rise of 7.7%.
Zacks Rank & Other Stocks to Consider
Methanex sports a Zacks Rank #1 (Strong Buy).
Some other top-ranked stocks in the basic material space are Domtar Corporation , Celanese Corporation (CE - Free Report) and BHP Billiton Limited (BHP - Free Report) .
Celanese has an expected long-term earnings growth of 9.33% and carries a Zacks Rank #1. Its shares have moved up 20.3% over a year.
BHP Billiton has an expected long-term earnings growth rate of 5.3% and carries a Zacks Rank #2 (Buy). Its shares have shot up roughly 22% over a year.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Image: Bigstock
Methanex (MEOH) Q2 Earnings Beat Estimates, Revenues Up Y/Y
Methanex Corporation (MEOH - Free Report) recorded profit (attributable to Methanex shareholders) of $111 million or $1.36 per share in the second quarter of 2018. The figure increased around 32% from $84 million or 89 cents a year ago and also improved from a profit of $169 million or $2.00 in the previous quarter.
Adjusted (barring one-time items) earnings per share in the quarter were $1.75. It beat the Zacks Consensus Estimate of $1.70.
Adjusted EBITDA of the chemical maker in the quarter was $275 million compared with $174 million in the prior-year quarter.
Revenues increased roughly 42% year over year to $950 million in the second quarter. The company gained from higher methanol prices and demand in the quarter.
Production in the second quarter totaled 1,648,000 tons compared with 1,614,000 tons a year ago.
Average realized price for methanol was $405 per ton in the reported quarter, up from $327 per ton a year ago and $402 per ton in the preceding quarter.
Methanex Corporation Price, Consensus and EPS Surprise
Methanex Corporation Price, Consensus and EPS Surprise | Methanex Corporation Quote
Financials
Cash flow from operating activities in the reported quarter was $290 million compared with $243 million in the prior-year quarter. Cash and cash equivalents were $320 million at the end of the quarter, down 11% year over year. Long-term debt was around $1.46 billion, down roughly 1.3% year over year.
Outlook
Methanex’s Chile IV plant is progressing with its restart process which is expected to be complete by the end of 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.
Price Performance
Shares of Methanex have moved up 54.1% over a year, outperforming the industry’s rise of 7.7%.
Zacks Rank & Other Stocks to Consider
Methanex sports a Zacks Rank #1 (Strong Buy).
Some other top-ranked stocks in the basic material space are Domtar Corporation , Celanese Corporation (CE - Free Report) and BHP Billiton Limited (BHP - Free Report) .
Domtar has an expected long-term earnings growth of 5% and sports a Zacks Rank #1. Its shares have gained 22.1% 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 9.33% and carries a Zacks Rank #1. Its shares have moved up 20.3% over a year.
BHP Billiton has an expected long-term earnings growth rate of 5.3% and carries a Zacks Rank #2 (Buy). Its shares have shot up roughly 22% over a year.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Click for details >>