Methanex Thumps Estimates in Blowout Quarter
By Seth Jayson | More Articles
January 27, 2012 | Comments (0)
Methanex (Nasdaq: MEOH ) reported earnings on Jan. 26. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Methanex beat expectations on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly, and GAAP earnings per share grew significantly.
Margins increased across the board.
Revenue details
Methanex booked revenue of $696.5 million. The six analysts polled by S&P Capital IQ expected net sales of $682.2 million. Sales were 22% higher than the prior-year quarter's $570.3 million.
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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
EPS details
Non-GAAP EPS came in at $0.69. The seven earnings estimates compiled by S&P Capital IQ averaged $0.55 per share on the same basis. GAAP EPS of $0.59 for Q4 were 127% higher than the prior-year quarter's $0.30 per share.
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Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
Margin details
For the quarter, gross margin was 21.5%, 900 basis points better than the prior-year quarter. Operating margin was 15.2%, 800 basis points better than the prior-year quarter. Net margin was 9.2%, 430 basis points better than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $569.0 million. On the bottom line, the average EPS estimate is $0.40.
Next year's average estimate for revenue is $2.46 billion. The average EPS estimate is $2.73.
Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 220 members out of 232 rating the stock outperform, and 12 members rating it underperform. Among 81 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 78 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 $32.56.
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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. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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3/30/2012 4:00 PM
MEOH $32.43 Up +0.61 +1.92%
Methanex Corp (USA… CAPS Rating: *****
