Methanex's (MEOH) Earnings & Sales Surpass Estimates in Q3
Methanex Corporation MEOH logged third-quarter 2023 adjusted earnings of 2 cents per share compared with 69 cents in the year-ago quarter. The bottom line surpassed the Zacks Consensus Estimate of a loss of 8 cents.
Revenues declined around 18.7% year over year to $823 million in the quarter. However, the top line beat the Zacks Consensus Estimate of $779.2 million.
Adjusted EBITDA in the reported quarter fell 45.3% year over year to $105 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 1,545,000 tons, up around 23.4% year over year. The figure was below our estimate of 1,556,000 tons. Total sales volume in the third quarter was 2,720,000 tons, higher than the prior-year quarter’s figure of 2,677,000 tons. The figure surpassed our estimate of 2,359,000 tons.
The average realized price for methanol was $303 per ton, down from $377 in the prior-year quarter. The figure was below our estimate of $316 per ton.
Financials
Cash flow from operating activities was $106 million. The company paid out $12 million in regular dividends to shareholders and concluded the third quarter with $529 million in cash.
Outlook
Methanex anticipates that actual production in 2023 will be somewhat higher than the production outlook of about 6.5 million equity tons, excluding any G3 output. Actual output may vary per quarter due to turnaround timing, gas availability, unscheduled outages and unanticipated events, MEOH noted.
Price Performance
Shares of Methanex have jumped 15.3% in the past year against a 5.7% fall of the industry.
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Zacks Rank & Other Key Picks
Methanex currently carries a Zacks Rank #2 (Buy).
Other top-ranked stocks in the basic materials space include Equinox Gold Corp. EQX, Koppers Holdings Inc. KOP and The Andersons Inc. ANDE.
Equinox has a projected earnings growth rate of 90% for the current year. It currently carries a Zacks Rank #1 (Strong Buy). Equinox delivered a trailing four-quarter earnings surprise of roughly 18.1%, on average. The stock is up around 27.8% in a year. You can see the complete list of today’s Zacks #1 Rank stocks here.
Koppers has a projected earnings growth rate of 7.5% for the current year. It currently carries a Zacks Rank #2. Koppers delivered a trailing four-quarter earnings surprise of roughly 21.7%, on average. The stock is up around 45.2% in a year.
Andersons currently carries a Zacks Rank #1. The stock has gained roughly 37.3% in the past year. ANDE beat the Zacks Consensus Estimate in each of the last four quarters. It delivered a trailing four-quarter earnings surprise of 64.4%, on average.
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