The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Methanex beat expectations on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly, and GAAP earnings per share grew significantly.
Margins increased across the board.
Methanex booked revenue of $696.5 million. The six analysts polled by S&P Capital IQ expected net sales of $682.2 million. Sales were 22% higher than the prior-year quarter's $570.3 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.69. The seven earnings estimates compiled by S&P Capital IQ averaged $0.55 per share on the same basis. GAAP EPS of $0.59 for Q4 were 127% higher than the prior-year quarter's $0.30 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 21.5%, 900 basis points better than the prior-year quarter. Operating margin was 15.2%, 800 basis points better than the prior-year quarter. Net margin was 9.2%, 430 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $569.0 million. On the bottom line, the average EPS estimate is $0.40.
Next year's average estimate for revenue is $2.46 billion. The average EPS estimate is $2.73.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 220 members out of 232 rating the stock outperform, and 12 members rating it underperform. Among 81 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 78 give Methanex a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Methanex is outperform, with an average price target of $32.56.
Over the decades, small-cap stocks like Methanex have provided market-beating returns, provided they're value priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add Methanex to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.