Back to top
Read MoreHide Full Article
Chemical maker Methanex Corporation (MEOH - Free Report) recorded net profit (attributable to Methanex shareholders) of $84 million or 89 cents per share in the second quarter of 2017 against a loss of $3 million or 8 cents logged a year ago and a profit of $132 million or $1.46 per share in the first quarter of 2017.
Earnings declined on a sequential basis due to a decrease in average realized methanol price during the second quarter.
Adjusted (barring one-time items) earnings per share for the reported quarter was 85 cents per share, missing the Zacks Consensus Estimate of $1.19 per share.
Adjusted EBITDA in the quarter was $174 million compared with $38 million in the prior-year quarter. 
Production for the second quarter was 1,614,000 tons compared with 1,770,000 tons in the year-ago period.
Revenues rose roughly 42.9% year over year to $669 million in the reported quarter. 
Methanex Corporation Price, Consensus and EPS Surprise
Cash flows from operating activities in the second quarter were $250 million compared with $34 million for the prior-year quarter. Cash and cash equivalents were $361.3 million in the second quarter of 2017, up 34.3% year over year. Long-term debt was around $1.53 billion, up roughly 2% year over year.
Methanex expects global methanol prices to stabilize in the third quarter. The company expects EBITDA to decline sequentially in the third quarter.
Price Performance
Methanex’s shares lost 1.4% in the last three months, outperforming the industry’s gain of 4.2%.
Zacks Rank & Key Picks
Methanex currently carries a Zacks Rank #5 (Strong Sell).
Some better-ranked companies in the basic material space include Akzo Nobel N.V. (AKZOY - Free Report) , Arkema S.A. (ARKAY - Free Report) and Hitachi Chemical (HCHMY - Free Report) . All three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Akzo Nobel has expected long-term earnings growth of 11.1%.
Arkema has expected long-term earnings growth of 12.4%.
Hitachi Chemical has expected long-term earnings growth of 5%.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs. 
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

Methanex Corporation (MEOH) - free report >>

Arkema SA (ARKAY) - free report >>

Akzo Nobel NV (AKZOY) - free report >>

HITACHI CHEMICL (HCHMY) - free report >>

More from Zacks Analyst Blog

You May Like