Yahoo Sport 
Methanex (MEOH) Down 6.8% Since Last Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for Methanex (MEOH). Shares have lost about 6.8% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Methanex due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Methanex's Q1 Earnings & Revenues Surpass Estimates
Methanex logged a first-quarter 2023 profit (attributable to shareholders) of $60 million or 87 cents per share, down from $119 million or $1.60 per share in the year-ago quarter.
Adjusted earnings per share (barring one-time items) in the reported quarter were $1.11, topping the Zacks Consensus Estimate of 92 cents.
Revenues fell 11.7% year over year to $1,038 million in the quarter. The top line, however, beat the Zacks Consensus Estimate of $975 million.
Adjusted EBITDA in the reported quarter fell around 38% year over year to $209 million. The results were hurt by lower average realized prices.
Operational Highlights
Production in the quarter totaled 1,660,000 tons, down 7.2% year over year. Production was, however, higher than the prior quarter, which was affected by an extended turnaround in Egypt, gas restrictions in Chile and outages in Geismar and Trinidad.
Total sales volume in the first quarter totaled 2,805,000 tons, up 1.7% year over year.
The average realized price for methanol was $371 per ton in the quarter, down from $425 per ton in the prior-year quarter.
Financials
Cash and cash equivalents were $780 million at the end of the quarter. Long-term debt at the end of the quarter was $2,133.8 million.
Cash flow from operating activities was $162 million in the quarter.
Outlook
Methanex forecasts production for 2023 to be 1.3-1.4 million tons in New Zealand and 0.8-0.9 million tons in Chile.
Production for 2023 is expected to be at 6.5 million tons, excluding any Geismar 3 output. Actual output may vary quarterly due to turnaround schedule, gas availability, unforeseen outages and unanticipated events, the company noted.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
The consensus estimate has shifted -20.56% due to these changes.
VGM Scores
At this time, Methanex has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Methanex has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Methanex Corporation (MEOH) : Free Stock Analysis Report
