The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Methanex missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue was unchanged and GAAP earnings per share dropped to a loss.
Margins dropped across the board.
Methanex logged revenue of $695.7 million. The eight analysts polled by S&P Capital IQ predicted revenue of $724.5 million on the same basis. GAAP reported sales were 0.1% lower than the prior-year quarter's $696.5 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 $0.64. The nine earnings estimates compiled by S&P Capital IQ predicted $0.55 per share. GAAP EPS were -$1.49 for Q4 compared to $0.68 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 17.6%, 390 basis points worse than the prior-year quarter. Operating margin was 11.7%, 350 basis points worse than the prior-year quarter. Net margin was -20.1%, 2,930 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $736.5 million. On the bottom line, the average EPS estimate is $0.62.
Next year's average estimate for revenue is $2.87 billion. The average EPS estimate is $2.60.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 214 members out of 225 rating the stock outperform, and 11 members rating it underperform. Among 63 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 59 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 $33.94.
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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. TMFDisclosureHere