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Methanex (MEOH) to Post Q3 Earnings: What's in the Cards?

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Methanex Corporation (MEOH - Free Report) is set to release third-quarter 2021 results on Oct 27, after market close. The company’s performance is expected to reflect healthy methanol demand as well as improvement in pricing.

The company’s earnings beat the Zacks Consensus Estimate in one of the last four quarters, while missing the same twice and meeting the estimate once. The company has a trailing four-quarter negative earnings surprise of 8.5%, on average. It posted an earnings surprise of 18.1% in the last reported quarter.

Methanex’s shares have surged 51% in the past year compared with a 25.2% rise of the industry.

Zacks Investment ResearchImage Source: Zacks Investment Research

Let’s see how things are shaping up for this announcement.

What do the Estimates Indicate?

The Zacks Consensus Estimate for third-quarter total sales is currently pegged at $1,036 million, which reflects a 78.3% rise from the year-ago quarter’s figure.

Some Factors to Watch Out For

Methanex is expected to have benefited from healthy demand for methanol on the back of the ongoing economic recovery. The company expects demand to surpass pre-pandemic level later this year.

It is also likely to have benefited from an improvement in methanol pricing. Strong methanol demand and ongoing industry supply challenges are expected to have driven methanol prices. Strong demand coupled with higher prices are likely to have boosted the top line in the quarter to be reported.

Zacks Model

Our proven model does not conclusively predict an earnings beat for Methanex this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earning beat. But that’s not the case here.

Earnings ESP: Earnings ESP for Methanex is -1.32%. The Zacks Consensus Estimate for third-quarter earnings is currently pegged at $1.32. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Methanex currently flaunts a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Methanex Corporation Price and EPS Surprise

 

Methanex Corporation Price and EPS Surprise

Methanex Corporation price-eps-surprise | Methanex Corporation Quote

 

Stocks That Warrant a Look

Here are some companies in the basic materials space you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:

LyondellBasell Industries N.V. (LYB - Free Report) , scheduled to release earnings on Oct 29, has an Earnings ESP of +0.61% and carries a Zacks Rank #3.

The Chemours Company (CC - Free Report) , scheduled to release earnings on Nov 4, has an Earnings ESP of +5.70% and carries a Zacks Rank #2.

Albemarle Corporation (ALB - Free Report) , scheduled to release earnings on Nov 3, has an Earnings ESP of +8.73% and carries a Zacks Rank #3.