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Methanex (MEOH) Q4 Earnings Beat Estimates, Revenues Up Y/Y
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Chemical maker, Methanex Corporation (MEOH - Free Report) recorded net profit (attributable to Methanex shareholders) of $68 million or 81 cents per share in the fourth quarter of 2017. The reported figure increased nearly three-folds from $24 million or 28 cents a year ago and also rose from a profit of $32 million or 38 cents in the previous quarter.
Adjusted (barring one-time items) earnings of $1.70 per share outpaced the Zacks Consensus Estimate of $1.19.
Adjusted EBITDA in the quarter was $254 million compared with $139 million in the prior-year quarter.
Production for the fourth quarter was 1,942,000 tons compared with 1,859,000 tons in the year-ago period.
Revenues increased roughly 47.2% year over year to $861 million in the fourth quarter.
FY17 Results
For 2017, the company posted profits of $316 million or $3.64 per share, compared with net loss of $13 million or 14 cents per share a year ago. Adjusted earnings for the year came in at $4.71 per share compared with a loss of 17 cents in 2016.
Additionally, Methanex reported revenues of $ 3.1 billion in 2017, up around 53.2% from $2 billion
Methanex Corporation Price, Consensus and EPS Surprise
Cash flows from operating activities in the reported quarter were $206 million compared with $66 million in the prior-year quarter. Cash and cash equivalents were $375.5 million at the end of the quarter, up 67.7% year over year. Long-term debt was around $1.45 billion, down roughly 3.7% year over year.
Outlook
Methanex noted that methanol prices improved in the reported quarter and into the early 2018, supported by healthy demand and methanol supply challenges. Meanwhile, the company’s Chile IV plant is progressing with its restart process and is expected to be complete by third-quarter 2018.
Price Performance
Shares of Methanex have moved up 26.4% in the last three months, outperforming the industry’s gain of 5.1%.
Zacks Rank & Key Picks
Methanex carries a Zacks Rank #2 (Buy).
Some other stocks worth considering from the chemical space are Air Products and Chemicals Inc. (APD - Free Report) , Huntsman Corporation (HUN - Free Report) and BASF SE (BASFY - Free Report) .
Huntsman has an expected long-term earnings growth of 8% and a Zacks Rank #2. Its shares have rallied 67.9% in a year.
BASF has an expected long-term earnings growth of 8.7% and a Zacks Rank #2. Its shares have gained 21.3% over a year.
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Methanex (MEOH) Q4 Earnings Beat Estimates, Revenues Up Y/Y
Methanex Corporation Price, Consensus and EPS Surprise | Methanex Corporation Quote
Financials
Cash flows from operating activities in the reported quarter were $206 million compared with $66 million in the prior-year quarter. Cash and cash equivalents were $375.5 million at the end of the quarter, up 67.7% year over year. Long-term debt was around $1.45 billion, down roughly 3.7% year over year.
Outlook
Methanex noted that methanol prices improved in the reported quarter and into the early 2018, supported by healthy demand and methanol supply challenges. Meanwhile, the company’s Chile IV plant is progressing with its restart process and is expected to be complete by third-quarter 2018.
Price Performance
Shares of Methanex have moved up 26.4% in the last three months, outperforming the industry’s gain of 5.1%.