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Methanex's (MEOH) Q2 Earnings Beat Estimates, Sales Miss
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Methanex Corporation (MEOH - Free Report) logged second-quarter 2024 adjusted earnings of 62 cents per share compared with 60 cents in the year-ago quarter. The bottom line surpassed the Zacks Consensus Estimate of 49 cents.
Revenues declined around 2.1% year over year to $920 million in the quarter. The top line also missed the Zacks Consensus Estimate of $986.4 million.
Adjusted EBITDA in the reported quarter rose 2.5% year over year to $164 million.
Methanex Corporation Price, Consensus and EPS Surprise
Production in the quarter totaled 1,422,000 tons, down around 14.2% year over year. The figure was below our estimate of 1,648,000 tons. Total sales volume in the second quarter was 2,612,000 tons, lower than the prior-year quarter’s figure of 2,782,000 tons. The figure missed our estimate of 2,853,000 tons.
The average realized price for methanol was $352 per ton, up roughly 4.1% from $338 in the prior-year quarter. The figure was above our estimate of $346 per ton.
Financials
Cash and cash equivalents rose 4.7% from the prior quarter to $426.1 million at the end of the second quarter. Long-term debt at the end of the quarter was $1,821.5 million, stable sequentially.
Cash flow from operating activities was $163 million, down around 16.8% year over year. The company returned $12.5 million to shareholders in regular dividends.
Outlook
Methanex's production for 2024 is estimated to be around 7 million tons. Quarterly production may vary due to gas availability in Chile and New Zealand, start-up of the G3 plant, turnarounds, unforeseen outages and unanticipated events.
For the third quarter, the company anticipates decreased earnings due to lower production from Chile and New Zealand, as well as G3 accumulating inventory. The company's posted pricing for July and August indicate an average realized price range of $350 to $360 per ton for these months.
Price Performance
Shares of Methanex have gained 3.7% in the past year against a 11.5% decline of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
MEOH currently carries a Zacks Rank #4 (Sell).
Better-ranked stocks worth a look in the basic materials space include Barrick Gold Corporation (GOLD - Free Report) , Ero Copper Corp. (ERO - Free Report) and SilverCrest Metals Inc. (SILV - Free Report) .
Barrick is slated to report second-quarter results on Aug 12, before market open. The Zacks Consensus Estimate for GOLD’s second-quarter earnings is pegged at 26 cents. GOLD beat the consensus in the last four quarters, with the average earnings surprise being 18.3%. GOLD currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Ero Copper is slated to report second-quarter results on Aug 1, after market close. The Zacks Consensus Estimate for ERO’s second-quarter earnings is pegged at 17 cents. It currently carries a Zacks Rank #2. ERO beat the consensus in three of the last four quarters, with the average earnings surprise being 53.9%
SilverCrest will report results for the second quarter on Aug 7. The Zacks Consensus Estimate for SilverCrest's second-year earnings is pegged at 17 cents. SILV, a Zacks Rank #2 stock, beat the consensus in the last four quarters, with the average earnings surprise being 42.4%. The stock has surged nearly 63.6% in the past year.
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Methanex's (MEOH) Q2 Earnings Beat Estimates, Sales Miss
Methanex Corporation (MEOH - Free Report) logged second-quarter 2024 adjusted earnings of 62 cents per share compared with 60 cents in the year-ago quarter. The bottom line surpassed the Zacks Consensus Estimate of 49 cents.
Revenues declined around 2.1% year over year to $920 million in the quarter. The top line also missed the Zacks Consensus Estimate of $986.4 million.
Adjusted EBITDA in the reported quarter rose 2.5% year over year to $164 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 1,422,000 tons, down around 14.2% year over year. The figure was below our estimate of 1,648,000 tons. Total sales volume in the second quarter was 2,612,000 tons, lower than the prior-year quarter’s figure of 2,782,000 tons. The figure missed our estimate of 2,853,000 tons.
The average realized price for methanol was $352 per ton, up roughly 4.1% from $338 in the prior-year quarter. The figure was above our estimate of $346 per ton.
Financials
Cash and cash equivalents rose 4.7% from the prior quarter to $426.1 million at the end of the second quarter. Long-term debt at the end of the quarter was $1,821.5 million, stable sequentially.
Cash flow from operating activities was $163 million, down around 16.8% year over year. The company returned $12.5 million to shareholders in regular dividends.
Outlook
Methanex's production for 2024 is estimated to be around 7 million tons. Quarterly production may vary due to gas availability in Chile and New Zealand, start-up of the G3 plant, turnarounds, unforeseen outages and unanticipated events.
For the third quarter, the company anticipates decreased earnings due to lower production from Chile and New Zealand, as well as G3 accumulating inventory. The company's posted pricing for July and August indicate an average realized price range of $350 to $360 per ton for these months.
Price Performance
Shares of Methanex have gained 3.7% in the past year against a 11.5% decline of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
MEOH currently carries a Zacks Rank #4 (Sell).
Better-ranked stocks worth a look in the basic materials space include Barrick Gold Corporation (GOLD - Free Report) , Ero Copper Corp. (ERO - Free Report) and SilverCrest Metals Inc. (SILV - Free Report) .
Barrick is slated to report second-quarter results on Aug 12, before market open. The Zacks Consensus Estimate for GOLD’s second-quarter earnings is pegged at 26 cents. GOLD beat the consensus in the last four quarters, with the average earnings surprise being 18.3%. GOLD currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Ero Copper is slated to report second-quarter results on Aug 1, after market close. The Zacks Consensus Estimate for ERO’s second-quarter earnings is pegged at 17 cents. It currently carries a Zacks Rank #2. ERO beat the consensus in three of the last four quarters, with the average earnings surprise being 53.9%
SilverCrest will report results for the second quarter on Aug 7. The Zacks Consensus Estimate for SilverCrest's second-year earnings is pegged at 17 cents. SILV, a Zacks Rank #2 stock, beat the consensus in the last four quarters, with the average earnings surprise being 42.4%. The stock has surged nearly 63.6% in the past year.