Methanex (MEOH) got here out with quarterly earnings of $1.07 per share, in step with the Zacks Consensus Estimate. This compares to earnings of $0.10 per share a yr in the past. These figures are adjusted for non-recurring gadgets.
1 / 4 in the past, it was anticipated that this methanol provider would publish earnings of $0.26 per share when it truly produced earnings of $0.15, delivering a shock of -42.31%.
During the last 4 quarters, the corporate has surpassed consensus EPS estimates simply as soon as.
Methanex, which belongs to the Zacks Chemical – Diversified business, posted revenues of $1.02 billion for the quarter ended March 2021, surpassing the Zacks Consensus Estimate by 18.97%. This compares to year-ago revenues of $745 million. The corporate has topped consensus income estimates thrice during the last 4 quarters.
The sustainability of the inventory’s instant value motion based mostly on the recently-released numbers and future earnings expectations will principally rely on administration’s commentary on the earnings name.
Methanex shares have misplaced about 14.7% for the reason that starting of the yr versus the S&P 500’s achieve of 11.5%.
What’s Subsequent for Methanex?
Whereas Methanex has underperformed the market up to now this yr, the query that involves buyers’ minds is: what’s subsequent for the inventory?
There aren’t any simple solutions to this key query, however one dependable measure that may assist buyers tackle that is the corporate’s earnings outlook. Not solely does this embody present consensus earnings expectations for the approaching quarter(s), but additionally how these expectations have modified currently.
Empirical analysis exhibits a robust correlation between near-term inventory actions and tendencies in earnings estimate revisions. Traders can monitor such revisions by themselves or depend on a tried-and-tested score software just like the Zacks Rank, which has a formidable monitor file of harnessing the ability of earnings estimate revisions.
Forward of this earnings launch, the estimate revisions development for Methanex was favorable. Whereas the magnitude and route of estimate revisions might change following the corporate’s just-released earnings report, the present standing interprets right into a Zacks Rank #2 (Purchase) for the inventory. So, the shares are anticipated to outperform the market within the close to future. You possibly can see the entire checklist of in the present day’s Zacks #1 Rank (Sturdy Purchase) shares right here.
It will likely be attention-grabbing to see how estimates for the approaching quarters and present fiscal yr change within the days forward. The present consensus EPS estimate is -$0.34 on $771 million in revenues for the approaching quarter and $2.35 on $3.29 billion in revenues for the present fiscal yr.
Traders needs to be conscious of the truth that the outlook for the business can have a fabric influence on the efficiency of the inventory as effectively. By way of the Zacks Trade Rank, Chemical – Diversified is presently within the high 28% of the 250 plus Zacks industries. Our analysis exhibits that the highest 50% of the Zacks-ranked industries outperform the underside 50% by an element of greater than 2 to 1.
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Methanex Company (MEOH): Free Inventory Evaluation Report
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