Methanex Corporation MEOH is set to release fourth-quarter 2021 results on Jan 26, after market close. The company’s performance is expected to reflect higher methanol 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 6.6%, on average. Methanex reported a negative earnings surprise of 2.3% in the last reported quarter.
Methanex’s shares have gained 27.8% in the past year compared with a 9.5% rise of the industry.
Image 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 fourth-quarter total sales is currently pegged at $1,299 million, which reflects a 60.2% rise from the year-ago quarter’s figure.
Our proven model predicts 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 earnings beat.
Earnings ESP: Earnings ESP for Methanex is +0.52%. The Zacks Consensus Estimate for fourth-quarter earnings is currently pegged at $2.56. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Methanex currently carries a Zacks Rank #3.
Some Factors to Watch Out For
In the fourth quarter, Methanex is expected to have benefited from higher methanol prices brought about by the methanol industry-supply challenges. MEOH expects methanol prices to be significantly higher in fourth-quarter 2021. Increased prices are expected to have contributed to the bottom line.
The production resumption at its Chile 4 plant in early October 2021 is also anticipated to have ramped up Methanex’s December-quarter production.
The restart of the Motunui plant in New Zealand during late August and the benefits from the debottlenecking project are also expected to have led to higher adjusted EBITDA, sequentially, in the fourth quarter.
Stocks That Warrant a Look
Here are some other companies in the basic materials space you may want to consider as our model shows these too have the right combination of elements to post an earnings beat this quarter:
Olin Corporation OLN, scheduled to release earnings on Jan 27, has an Earnings ESP of +1.95% and carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Olin's fourth-quarter earnings has been revised 4.1% upward in the past 60 days. The consensus estimate for OLN’s earnings for the quarter is currently pegged at $2.53.
CF Industries Holdings, Inc. CF, expected to release earnings on Feb 16, has an Earnings ESP of +18.88% and sports a Zacks Rank #1.
The consensus estimate for CF Industries' fourth-quarter earnings has been revised 31.5% upward in the past 60 days. The Zacks Consensus Estimate for CF’s earnings for the quarter stands at $3.05.
Celanese Corporation CE, scheduled to release earnings on Jan 27, has an Earnings ESP of +2.98% and carries a Zacks Rank #3.
The Zacks Consensus Estimate for Celanese's fourth-quarter earnings has been revised 0.6% upward over the past 60 days. The consensus estimate for CE’s earnings for the quarter is currently pegged at $5.05.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
CF Industries Holdings, Inc. (CF) : Free Stock Analysis Report
Methanex Corporation (MEOH) : Free Stock Analysis Report
Celanese Corporation (CE) : Free Stock Analysis Report
Olin Corporation (OLN) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research