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Methanex (MEOH) got here out with quarterly earnings of $2.43 per share, lacking the Zacks Consensus Estimate of $2.56 per share. This compares to earnings of $0.15 per share a 12 months in the past. These figures are adjusted for non-recurring objects.
This quarterly report represents an earnings shock of -5.08%. 1 / 4 in the past, it was anticipated that this methanol provider would submit earnings of $1.32 per share when it truly produced earnings of $1.29, delivering a shock of -2.27%.
Over the past 4 quarters, the corporate has surpassed consensus EPS estimates simply as soon as.
The sustainability of the inventory’s quick worth motion primarily based on the recently-released numbers and future earnings expectations will principally rely upon administration’s commentary on the earnings name.
Methanex shares have added about 13.5% for the reason that starting of the 12 months versus the S&P 500’s decline of -8.6%.
What’s Subsequent for Methanex?
Whereas Methanex has outperformed the market up to now this 12 months, 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 embrace present consensus earnings expectations for the approaching quarter(s), but in addition how these expectations have modified currently.
Empirical analysis exhibits a powerful correlation between near-term inventory actions and traits in earnings estimate revisions. Buyers can observe such revisions by themselves or depend on a tried-and-tested score software just like the Zacks Rank, which has a formidable observe file of harnessing the facility of earnings estimate revisions.
Forward of this earnings launch, the estimate revisions pattern for Methanex: combined. Whereas the magnitude and path of estimate revisions may change following the corporate’s just-released earnings report, the present standing interprets right into a Zacks Rank #3 (Maintain) for the inventory. So, the shares are anticipated to carry out according to the market within the close to future. You possibly can see the entire checklist of immediately’s Zacks #1 Rank (Robust Purchase) shares right here.
It will likely be fascinating to see how estimates for the approaching quarters and present fiscal 12 months change within the days forward. The present consensus EPS estimate is $2.01 on $1.17 billion in revenues for the approaching quarter and $5.64 on $4.34 billion in revenues for the present fiscal 12 months.
Buyers must be aware of the truth that the outlook for the trade can have a fabric influence on the efficiency of the inventory as properly. When it comes to the Zacks Business Rank, Chemical – Diversified is at the moment within the backside 35% 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.
Eastman Chemical (EMN), one other inventory in the identical trade, has but to report outcomes for the quarter ended December 2021. The outcomes are anticipated to be launched on January 27.
This specialty chemical compounds maker is anticipated to submit quarterly earnings of $1.89 per share in its upcoming report, which represents a year-over-year change of +11.8%. The consensus EPS estimate for the quarter has been revised 0.8% decrease during the last 30 days to the present stage.
Eastman Chemical’s revenues are anticipated to be $2.42 billion, up 10.9% from the year-ago quarter.
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