Methanex
The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Methanex met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped slightly and GAAP earnings per share shrank to a loss.
Margins dropped across the board.
Revenue details
Methanex reported revenue of $655.3 million. The seven analysts polled by S&P Capital IQ expected sales of $659.1 million on the same basis. GAAP reported sales were 2.1% lower than the prior-year quarter's $669.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
EPS came in at $0.38. The seven earnings estimates compiled by S&P Capital IQ averaged $0.32 per share. GAAP EPS were -$0.03 for Q3 compared to $0.59 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Margin details
For the quarter, gross margin was 17.8%, 550 basis points worse than the prior-year quarter. Operating margin was 10.5%, 630 basis points worse than the prior-year quarter. Net margin was -0.4%, 970 basis points worse than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $705.4 million. On the bottom line, the average EPS estimate is $0.55.
Next year's average estimate for revenue is $2.67 billion. The average EPS estimate is $1.70.
Investor sentiment
The stock has a four-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 64 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 60 give Methanex a green thumbs-up, and four 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 $33.39.
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