The 10-second takeaway
For the quarter ended March 31 (Q1), Methanex beat expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share contracted significantly.
Gross margins increased, operating margins improved, net margins shrank.
Methanex tallied revenue of $665.9 million. The seven analysts polled by S&P Capital IQ predicted revenue of $634.4 million on the same basis. GAAP reported sales were 7.6% higher than the prior-year quarter's $619.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.23. The seven earnings estimates compiled by S&P Capital IQ predicted $0.38 per share. GAAP EPS of $0.23 for Q1 were 38% lower than the prior-year quarter's $0.37 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 14.6%, 210 basis points better than the prior-year quarter. Operating margin was 8.9%, 120 basis points better than the prior-year quarter. Net margin was 3.3%, 230 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $659.4 million. On the bottom line, the average EPS estimate is $0.75.
Next year's average estimate for revenue is $2.72 billion. The average EPS estimate is $2.98.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 216 members out of 228 rating the stock outperform, and 12 members rating it underperform. Among 66 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 63 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 $33.75.
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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.