Methanex's (MEOH) Q2 Earnings & Revenues Surpass Estimates
Methanex Corporation MEOH logged second-quarter 2023 adjusted earnings of 60 cents per share compared with $1.16 in the year-ago quarter. The bottom line surpassed the Zacks Consensus Estimate of 55 cents.
Revenues declined around 17.4% year over year to $939.4 million in the quarter. However, the top line beat the Zacks Consensus Estimate of $901 million.
Adjusted EBITDA in the reported quarter fell 34.2% year over year to $160 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 1,658,000 tons, up around 6.9% year over year. The figure surpassed our estimate of 1,621,000 tons. Total sales volume in the second quarter was 2,782,000 tons, higher than the prior-year quarter’s figure of 2,692,000 tons. The figure surpassed our estimate of 2,678,000 tons.
The average realized price for methanol was $338 per ton, down roughly 19.9% from $422 per ton in the prior-year quarter. The figure was below our estimate of $352 per ton.
Financials
Cash and cash equivalents fell 17.2% from the prior quarter to $645.7 million at the end of the second quarter. Long-term debt at the end of the quarter was $2,131.2 million, down from $2,133.8 million sequentially.
Cash flow from operating activities was $196.4 million, up around 85.3% year over year. The company returned $51 million to shareholders through dividends and share repurchases in the quarter.
Outlook
In 2023, the company anticipates producing about 6.5 million equity tons, excluding any G3 output. Based on the timing of turnarounds, gas availability, unanticipated events, unscheduled outages and other factors, actual production may vary each quarter, it noted.
Price Performance
Shares of Methanex have jumped 11% in the past year compared with an 10.4% rise of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Methanex currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks worth considering in the basic materials space include PPG Industries Inc. PPG, ATI Inc. ATI and Carpenter Technology Corporation CRS.
PPG, currently carrying a Zacks Rank #1 (Strong Buy), has an expected earnings growth rate of 20.8% for the current fiscal year. The Zacks Consensus Estimate for PPG's earnings for the current fiscal year has been revised 1.6% upward in the past 60 days. It delivered an earnings surprise of 7.3% each of the trailing four quarters, on average. PPG has gained around 16.5% over a year. You can see the complete list of today’s Zacks #1 Rank stocks here.
ATI, currently carrying a Zacks Rank #2 (Buy), has a projected earnings growth rate of 13.1% for the current year. Its earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 13%, on average. ATI shares are up around 97.3% in a year.
CRS, currently carrying a Zacks Rank #1, has a projected earnings growth rate of 198.11% for the current year. Its earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 30.9%, on average. CRS shares are up around 97% in a year.
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