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Methanex (MEOH) Scales 52-Week High: What's Driving the Stock?
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Methanex Corporation’s (MEOH - Free Report) shares touched a new 52-week high of $51.42 on Apr 8 before closing at $49.91.
In the past year, the stock has increased 11.9% compared with the industry’s 5.4% fall.
Image Source: Zacks Investment Research
What’s Driving Methanex?
Optimism over favorable methanol industry conditions underpinned by healthy demand for methanol in traditional and energy applications is driving the stock. During the fourth quarter, Methanex achieved a production volume of 1,779,000 tons, rising approximately 16.6% from the previous year’s levels. Additionally, total sales volume in the fourth quarter reached 2,862,000 tons, higher than the 2,647,000 tons recorded in the same quarter of the prior year.
A notable highlight for Methanex in the quarter was the progress made on the Geismar 3 project, aligning closely with the company's strategic plans. This initiative is expected to enhance Methanex's asset portfolio and drive future cash generation, ultimately delivering long-term value to shareholders.
MEOH, in February 2024, stated that the commercial production of Geismar 3 has been delayed owing to issues with the autothermal reformer during the last stages of the first start-up process. It expects commercial production to be delayed through the end of the third quarter of 2024. Management estimates that the total capital cost will not considerably exceed the higher end of the $1.3 billion capital cost guidance.
Methanex, in its fourth-quarter call, stated that it anticipates that the initiation of Geismar 3 production in 2024 will surpass the 2023 figure by approximately 8.1 million tons. This forecast relies on guidance from Chile and New Zealand, with Geismar 3 ramping up through February, Egypt restarting operations in the first half of February and all other plants operating at full capacity. Quarterly production levels may fluctuate due to turnaround schedules, gas supply, unforeseen outages and unexpected events.
In the fourth quarter of 2023, Methanex announced adjusted earnings of 52 cents per share, surpassing the Zacks Consensus Estimate of 28 cents. This achievement marks a continuation of Methanex's trend of consistently outperforming earnings forecasts, boasting an impressive average surprise of 60.1% in the past four quarters.
The consensus estimate for CRS’ current fiscal year earnings is pegged at $4 per share, indicating a year-over-year surge of 250.9%. CRS beat on earnings in each of the last four quarters, delivering an average surprise of 12.2%. The company’s shares have risen 90.6% in the past year.
Ecolab has a projected earnings growth rate of 22.65% for the current year. The Zacks Consensus Estimate for ECL’s current-year earnings has been revised upward by 5.4% in the past 60 days. ECL beat on earnings in each of the last four quarters, delivering an average surprise of 1.7%. The company’s shares have rallied 36.7% in the past year.
The consensus estimate for IOSP’s current fiscal year earnings is pegged at $6.72 per share, indicating a 10.3% year-over-year increase. IOSP beat on earnings in each of the last four quarters, delivering an average surprise of 10.5%. The company’s shares have risen 17.7% in the past year.
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Methanex (MEOH) Scales 52-Week High: What's Driving the Stock?
Methanex Corporation’s (MEOH - Free Report) shares touched a new 52-week high of $51.42 on Apr 8 before closing at $49.91.
In the past year, the stock has increased 11.9% compared with the industry’s 5.4% fall.
Image Source: Zacks Investment Research
What’s Driving Methanex?
Optimism over favorable methanol industry conditions underpinned by healthy demand for methanol in traditional and energy applications is driving the stock. During the fourth quarter, Methanex achieved a production volume of 1,779,000 tons, rising approximately 16.6% from the previous year’s levels. Additionally, total sales volume in the fourth quarter reached 2,862,000 tons, higher than the 2,647,000 tons recorded in the same quarter of the prior year.
A notable highlight for Methanex in the quarter was the progress made on the Geismar 3 project, aligning closely with the company's strategic plans. This initiative is expected to enhance Methanex's asset portfolio and drive future cash generation, ultimately delivering long-term value to shareholders.
MEOH, in February 2024, stated that the commercial production of Geismar 3 has been delayed owing to issues with the autothermal reformer during the last stages of the first start-up process. It expects commercial production to be delayed through the end of the third quarter of 2024. Management estimates that the total capital cost will not considerably exceed the higher end of the $1.3 billion capital cost guidance.
Methanex, in its fourth-quarter call, stated that it anticipates that the initiation of Geismar 3 production in 2024 will surpass the 2023 figure by approximately 8.1 million tons. This forecast relies on guidance from Chile and New Zealand, with Geismar 3 ramping up through February, Egypt restarting operations in the first half of February and all other plants operating at full capacity. Quarterly production levels may fluctuate due to turnaround schedules, gas supply, unforeseen outages and unexpected events.
In the fourth quarter of 2023, Methanex announced adjusted earnings of 52 cents per share, surpassing the Zacks Consensus Estimate of 28 cents. This achievement marks a continuation of Methanex's trend of consistently outperforming earnings forecasts, boasting an impressive average surprise of 60.1% in the past four quarters.
Methanex Corporation Price and Consensus
Methanex Corporation price-consensus-chart | Methanex Corporation Quote
Zacks Rank & Key Picks
Methanex currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Basic Materials space are Carpenter Technology Corporation (CRS - Free Report) , sporting a Zacks Rank #1 (Strong Buy), and Ecolab Inc. (ECL - Free Report) and Innospec Inc. (IOSP - Free Report) , each carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for CRS’ current fiscal year earnings is pegged at $4 per share, indicating a year-over-year surge of 250.9%. CRS beat on earnings in each of the last four quarters, delivering an average surprise of 12.2%. The company’s shares have risen 90.6% in the past year.
Ecolab has a projected earnings growth rate of 22.65% for the current year. The Zacks Consensus Estimate for ECL’s current-year earnings has been revised upward by 5.4% in the past 60 days. ECL beat on earnings in each of the last four quarters, delivering an average surprise of 1.7%. The company’s shares have rallied 36.7% in the past year.
The consensus estimate for IOSP’s current fiscal year earnings is pegged at $6.72 per share, indicating a 10.3% year-over-year increase. IOSP beat on earnings in each of the last four quarters, delivering an average surprise of 10.5%. The company’s shares have risen 17.7% in the past year.