Methanex's (MEOH) Earnings & Sales Surpass Estimates in Q4
Methanex Corporation MEOH logged fourth-quarter 2023 adjusted earnings of 52 cents per share compared with 73 cents in the year-ago quarter. The bottom line surpassed the Zacks Consensus Estimate of 28 cents.
Revenues declined around 6.5% year over year to $922 million in the quarter. However, the top line beat the Zacks Consensus Estimate of $901.2 million.
Adjusted EBITDA in the reported quarter fell 7.5% year over year to $148 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 1,779,000 tons, up around 16.6% year over year. The figure was above our estimate of 1,705,000 tons. Total sales volume in the fourth quarter was 2,862,000 tons, higher than the prior-year quarter’s figure of 2,647,000 tons. The figure surpassed our estimate of 2,581,000 tons.
The average realized price for methanol was $322 per ton, down from $373 in the prior-year quarter. The figure was below our estimate of $347 per ton.
FY2023 Results
Full-year 2023 earnings were $2.57 per share, down from $4.86 in the previous year. Net sales fell around 13.6% year over year to $3,723 million.
Financials
In 2023, the company returned $136 million to shareholders via regular dividends and share repurchases. The company finished the year with $458 million in cash.
Outlook
The company projects that with the start of Geismar 3, production in 2024 will surpass 2023’s figure by roughly 8.1 million tons. The 2024 production projection is based on the midpoint of Chile and New Zealand guidance, with G3 ramping up through February, Egypt restarting in the first half of February and all other plants operating at full capacity. Quarterly production may vary depending on turnaround timing, gas supply, unforeseen outages and unanticipated events.
Price Performance
Shares of Methanex have declined 6.1% in the past year compared with a 18.9% fall of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Methanex currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the basic materials space include, Cameco Corporation CCJ, Carpenter Technology Corporation CRS and Alpha Metallurgical Resources Inc. AMR.
Cameco, carrying a Zacks Rank #1 (Strong Buy), has a projected earnings growth rate of 188% for the current year. The Zacks Consensus Estimate for CCJ’s current-year earnings has been revised upward by 12.5% in the past 60 days. The stock is up around 66.6% in a year. You can see the complete list of today’s Zacks #1 Rank stocks here.
Carpenter Technology currently carries a Zacks Rank #1. CRS beat the Zacks Consensus Estimate in three of the last four quarters while matching it once, with the average earnings surprise being 12.2%. The company’s shares have soared 23.7% in the past year.
The Zacks Consensus Estimate for AMR’s current-year earnings has been revised upward by 69% in the past 60 days. It currently carries a Zacks Rank #1. AMR delivered a trailing four-quarter earnings surprise of roughly 9.6%, on average. AMR shares are up around 144.6% in a year.
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
Alpha Metallurgical Resources, Inc. (AMR) : Free Stock Analysis Report
Carpenter Technology Corporation (CRS) : Free Stock Analysis Report
Methanex Corporation (MEOH) : Free Stock Analysis Report
Cameco Corporation (CCJ) : Free Stock Analysis Report
