The 10-second takeaway
For the quarter ended March 31 (Q1), Methanex whiffed on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped slightly. Non-GAAP earnings per share increased significantly. GAAP earnings per share grew significantly.
Margins grew across the board.
Methanex recorded revenue of $651.9 million. The five analysts polled by S&P Capital IQ anticipated revenue of $744.5 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $0.92. The nine earnings estimates compiled by S&P Capital IQ averaged $0.73 per share. Non-GAAP EPS of $0.92 for Q1 were 300% higher than the prior-year quarter's $0.23 per share. GAAP EPS of $0.63 for Q1 were 174% higher than the prior-year quarter's $0.23 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 19.0%, 440 basis points better than the prior-year quarter. Operating margin was 14.4%, 550 basis points better than the prior-year quarter. Net margin was 9.2%, 590 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $725.8 million. On the bottom line, the average EPS estimate is $0.77.
Next year's average estimate for revenue is $2.94 billion. The average EPS estimate is $3.03.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 208 members out of 219 rating the stock outperform, and 11 members rating it underperform. Among 53 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 50 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 $44.00.
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