Methanex Corporation MEOH recorded profit (attributable to Methanex shareholders) of $111 million or $1.36 per share in the second quarter of 2018. The figure increased around 32% from $84 million or 89 cents a year ago and also improved from a profit of $169 million or $2.00 in the previous quarter.
Adjusted (barring one-time items) earnings per share in the quarter were $1.75. It beat the Zacks Consensus Estimate of $1.70.
Adjusted EBITDA of the chemical maker in the quarter was $275 million compared with $174 million in the prior-year quarter.
Revenues increased roughly 42% year over year to $950 million in the second quarter. The company gained from higher methanol prices and demand in the quarter.
Production in the second quarter totaled 1,648,000 tons compared with 1,614,000 tons a year ago.
Average realized price for methanol was $405 per ton in the reported quarter, up from $327 per ton a year ago and $402 per ton in the preceding quarter.
Methanex Corporation Price, Consensus and EPS Surprise
Financials
Cash flow from operating activities in the reported quarter was $290 million compared with $243 million in the prior-year quarter. Cash and cash equivalents were $320 million at the end of the quarter, down 11% year over year. Long-term debt was around $1.46 billion, down roughly 1.3% year over year.
Outlook
Methanex’s Chile IV plant is progressing with its restart process which is expected to be complete by the end of third-quarter 2018. With a committed revolving credit facility, strong balance sheet and healthy cash generation capability, the company believes that it is well positioned to meet its financial commitments, execute growth opportunities and return excess cash to shareholders through dividends and share repurchases.
Price Performance
Shares of Methanex have moved up 54.1% over a year, outperforming the industry’s rise of 7.7%.
Zacks Rank & Other Stocks to Consider
Methanex sports a Zacks Rank #1 (Strong Buy).
Some other top-ranked stocks in the basic material space are Domtar Corporation UFS, Celanese Corporation CE and BHP Billiton Limited BHP.
Domtar has an expected long-term earnings growth of 5% and sports a Zacks Rank #1. Its shares have gained 22.1% over a year. You can see the complete list of today’s Zacks #1 Rank stocks here.
Celanese has an expected long-term earnings growth of 9.33% and carries a Zacks Rank #1. Its shares have moved up 20.3% over a year.
BHP Billiton has an expected long-term earnings growth rate of 5.3% and carries a Zacks Rank #2 (Buy). Its shares have shot up roughly 22% over a year.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
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
Be the first to comment