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Methanex's (MEOH) Earnings Lag Estimates in Q3, Sales Beat
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Methanex Corporation (MEOH - Free Report) logged a profit (attributable to shareholders) of $69 million or 87 cents per share in third-quarter 2022 versus $71 million or 93 cents per share in the year-ago quarter.
Adjusted earnings per share (barring one-time items) in the reported quarter were 69 cents, missing the Zacks Consensus Estimate of 82 cents.
Revenues fell around 6% year over year to $1,012 million in the quarter. The top line beat the Zacks Consensus Estimate of $981.7 million.
Adjusted EBITDA in the reported quarter fell around 27% year over year to $192 million. The results in the reported quarter were hurt by lower average realized prices and reduced sales volumes.
Methanex Corporation Price, Consensus and EPS Surprise
Production in the quarter totaled 1,252,000 tons, down around 15% year over year. Total sales volume in the third quarter totaled 2,677,000 tons, down roughly 3% year over year.
The average realized price for methanol was $377 per ton in the quarter, down roughly 3% from $390 per ton in the prior-year quarter.
Financials
Cash and cash equivalents increased 3% year over year to $961.8 million at the end of the third quarter. Long-term debt at the end of the quarter was $2,138.9 million, almost flat year over year.
Cash flow from operating activities was $325.8 million, up around 8% year over year.
Methanex increased the quarterly dividend by 20% in July 2022. It also announced the approval of a 5% share repurchase program in September 2022.
The company returned $44 million to shareholders through dividends and share repurchases in the reported quarter.
Outlook
Methanex said that it is seeing stable demand and firm methanol prices heading into the fourth quarter. It forecasts production for 2022 to be roughly 1.2-1.3 million tons in New Zealand. The company projects production in 2022 to be roughly 0.9 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 declined 24.7% in the past year against a 14.3% decline of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Other Key Picks
Methanex currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks worth considering in the basic materials space include Sociedad Quimica y Minera de Chile S.A. (SQM - Free Report) , Ryerson Holding Corporation (RYI - Free Report) and Reliance Steel & Aluminum Co. (RS - Free Report) .
Sociedad has a projected earnings growth rate of 530.7% for the current year. The Zacks Consensus Estimate for SQM’s current-year earnings has been revised 2.1% upward in the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Sociedad has a trailing four-quarter earnings surprise of roughly 27.2%. SQM has rallied roughly 38% in a year. The company currently carries a Zacks Rank #1.
Ryerson Holding, currently carrying a Zacks Rank #2 (Buy), has an expected earnings growth rate of 74.2% for the current year. The consensus estimate for RYI's earnings for the current year has been revised 3.2% upward in the past 60 days.
Ryerson Holding’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 28.9%. RYI has gained around 15% over a year.
Reliance Steel, currently carrying a Zacks Rank #2, has a projected earnings growth rate of 29.7% for the current year. The Zacks Consensus Estimate for RS's current-year earnings has been revised 0.1% upward in the past 60 days.
Reliance Steel’s earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 13.6%, on average. RS has gained around 24% in a year.
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Methanex's (MEOH) Earnings Lag Estimates in Q3, Sales Beat
Methanex Corporation (MEOH - Free Report) logged a profit (attributable to shareholders) of $69 million or 87 cents per share in third-quarter 2022 versus $71 million or 93 cents per share in the year-ago quarter.
Adjusted earnings per share (barring one-time items) in the reported quarter were 69 cents, missing the Zacks Consensus Estimate of 82 cents.
Revenues fell around 6% year over year to $1,012 million in the quarter. The top line beat the Zacks Consensus Estimate of $981.7 million.
Adjusted EBITDA in the reported quarter fell around 27% year over year to $192 million. The results in the reported quarter were hurt by lower average realized prices and reduced sales volumes.
Methanex Corporation Price, Consensus and EPS Surprise
Methanex Corporation price-consensus-eps-surprise-chart | Methanex Corporation Quote
Operational Highlights
Production in the quarter totaled 1,252,000 tons, down around 15% year over year. Total sales volume in the third quarter totaled 2,677,000 tons, down roughly 3% year over year.
The average realized price for methanol was $377 per ton in the quarter, down roughly 3% from $390 per ton in the prior-year quarter.
Financials
Cash and cash equivalents increased 3% year over year to $961.8 million at the end of the third quarter. Long-term debt at the end of the quarter was $2,138.9 million, almost flat year over year.
Cash flow from operating activities was $325.8 million, up around 8% year over year.
Methanex increased the quarterly dividend by 20% in July 2022. It also announced the approval of a 5% share repurchase program in September 2022.
The company returned $44 million to shareholders through dividends and share repurchases in the reported quarter.
Outlook
Methanex said that it is seeing stable demand and firm methanol prices heading into the fourth quarter. It forecasts production for 2022 to be roughly 1.2-1.3 million tons in New Zealand. The company projects production in 2022 to be roughly 0.9 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 declined 24.7% in the past year against a 14.3% decline of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Other Key Picks
Methanex currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks worth considering in the basic materials space include Sociedad Quimica y Minera de Chile S.A. (SQM - Free Report) , Ryerson Holding Corporation (RYI - Free Report) and Reliance Steel & Aluminum Co. (RS - Free Report) .
Sociedad has a projected earnings growth rate of 530.7% for the current year. The Zacks Consensus Estimate for SQM’s current-year earnings has been revised 2.1% upward in the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Sociedad has a trailing four-quarter earnings surprise of roughly 27.2%. SQM has rallied roughly 38% in a year. The company currently carries a Zacks Rank #1.
Ryerson Holding, currently carrying a Zacks Rank #2 (Buy), has an expected earnings growth rate of 74.2% for the current year. The consensus estimate for RYI's earnings for the current year has been revised 3.2% upward in the past 60 days.
Ryerson Holding’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 28.9%. RYI has gained around 15% over a year.
Reliance Steel, currently carrying a Zacks Rank #2, has a projected earnings growth rate of 29.7% for the current year. The Zacks Consensus Estimate for RS's current-year earnings has been revised 0.1% upward in the past 60 days.
Reliance Steel’s earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 13.6%, on average. RS has gained around 24% in a year.