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Methanex (MEOH) Earnings and Revenues Lag Estimates in Q2
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Methanex Corporation (MEOH - Free Report) logged a profit (attributable to shareholders) of $125 million or $1.41 per share in second-quarter 2022 versus $107 million or $1.31 per share in the year-ago quarter.
Adjusted earnings per share (barring one-time items) in the reported quarter were $1.16, missing the Zacks Consensus Estimate of $1.85.
Revenues rose around 6.5% year over year to $1,137.2 million in the quarter. However, the top line missed the Zacks Consensus Estimate of $1,183 million.
Adjusted EBITDA in the reported quarter fell 7.3% year over year to $243 million.
Methanex Corporation Price, Consensus and EPS Surprise
Production in the quarter totaled 1,551,000 tons, up around 3.1% year over year. Total sales volume in the second quarter totaled 2,692,000 tons, lower than the prior-year quarter’s figure of 2,830,000 tons.
The average realized price for methanol was $422 per ton in the quarter, up roughly 12.2% from $376 per ton in the prior-year quarter.
Financials
Cash and cash equivalents increased 15% to $878 million at the end of the second quarter from $763.8 million at the end of the year-ago quarter. Long-term debt at the end of the quarter was $2,142 million, almost flat year over year.
Cash flow from operating activities was $105 million, down around 56.8% year over year. The company paid out dividends worth $10 million during the reported quarter.
Outlook
Methanex forecasts production for 2022 to be roughly 1.3 million tons in New Zealand. The company projects production in 2022 to be roughly 1 million tons in Chile. The construction of the Geismar 3 project is progressing and is expected to be operational in the fourth quarter of 2023.
Price Performance
Shares of Methanex have increased 7.3% in the past year against an 8.7% decline of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Methanex currently carries a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks in the basic materials space are Albemarle Corporation (ALB - Free Report) , Cabot Corporation (CBT - Free Report) and Sociedad Quimica y Minera de Chile S.A. (SQM - Free Report) .
Albemarle has a projected earnings growth rate of 247% for the current year. The Zacks Consensus Estimate for ALB's current-year earnings has been revised 7.8% upward in the past 60 days.
Albemarle’s earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 22.5%, on average. ALB has gained around 15.9% in a year and currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Cabot, currently sporting a Zacks Rank #1, has an expected earnings growth rate of 22.5% for the current year. The Zacks Consensus Estimate for CBT's earnings for the current year has been revised 6% upward in the past 60 days.
Cabot’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 16.2%. CBT has gained around 34.7% over a year.
Sociedad has a projected earnings growth rate of 513.7% for the current year. The Zacks Consensus Estimate for SQM’s current-year earnings has been revised 57.8% upward in the past 60 days.
Sociedad’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters, the average being 28.2%. SQM has gained 102.9% in a year. The company sports a Zacks Rank #1.
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Methanex (MEOH) Earnings and Revenues Lag Estimates in Q2
Methanex Corporation (MEOH - Free Report) logged a profit (attributable to shareholders) of $125 million or $1.41 per share in second-quarter 2022 versus $107 million or $1.31 per share in the year-ago quarter.
Adjusted earnings per share (barring one-time items) in the reported quarter were $1.16, missing the Zacks Consensus Estimate of $1.85.
Revenues rose around 6.5% year over year to $1,137.2 million in the quarter. However, the top line missed the Zacks Consensus Estimate of $1,183 million.
Adjusted EBITDA in the reported quarter fell 7.3% year over year to $243 million.
Methanex Corporation Price, Consensus and EPS Surprise
Methanex Corporation price-consensus-eps-surprise-chart | Methanex Corporation Quote
Operational Highlights
Production in the quarter totaled 1,551,000 tons, up around 3.1% year over year. Total sales volume in the second quarter totaled 2,692,000 tons, lower than the prior-year quarter’s figure of 2,830,000 tons.
The average realized price for methanol was $422 per ton in the quarter, up roughly 12.2% from $376 per ton in the prior-year quarter.
Financials
Cash and cash equivalents increased 15% to $878 million at the end of the second quarter from $763.8 million at the end of the year-ago quarter. Long-term debt at the end of the quarter was $2,142 million, almost flat year over year.
Cash flow from operating activities was $105 million, down around 56.8% year over year. The company paid out dividends worth $10 million during the reported quarter.
Outlook
Methanex forecasts production for 2022 to be roughly 1.3 million tons in New Zealand. The company projects production in 2022 to be roughly 1 million tons in Chile. The construction of the Geismar 3 project is progressing and is expected to be operational in the fourth quarter of 2023.
Price Performance
Shares of Methanex have increased 7.3% in the past year against an 8.7% decline of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Methanex currently carries a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks in the basic materials space are Albemarle Corporation (ALB - Free Report) , Cabot Corporation (CBT - Free Report) and Sociedad Quimica y Minera de Chile S.A. (SQM - Free Report) .
Albemarle has a projected earnings growth rate of 247% for the current year. The Zacks Consensus Estimate for ALB's current-year earnings has been revised 7.8% upward in the past 60 days.
Albemarle’s earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 22.5%, on average. ALB has gained around 15.9% in a year and currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Cabot, currently sporting a Zacks Rank #1, has an expected earnings growth rate of 22.5% for the current year. The Zacks Consensus Estimate for CBT's earnings for the current year has been revised 6% upward in the past 60 days.
Cabot’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 16.2%. CBT has gained around 34.7% over a year.
Sociedad has a projected earnings growth rate of 513.7% for the current year. The Zacks Consensus Estimate for SQM’s current-year earnings has been revised 57.8% upward in the past 60 days.
Sociedad’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters, the average being 28.2%. SQM has gained 102.9% in a year. The company sports a Zacks Rank #1.