Methanex to Report Q3 Earnings: What's in the Cards for the Stock?

Methanex Corporation MEOH is set to release third-quarter 2025 results after the closing bell on Oct. 29.

The company surpassed the Zacks Consensus Estimate in each of the trailing four quarters at an average of roughly 83.2%. It posted an earnings surprise of 130.9% in the last reported quarter. MEOH is expected to have benefited from higher methanol volumes in the third quarter amid headwinds from lower prices. 

Methanex’s shares have lost 10.6% over the past year, compared with the Zacks Chemicals Diversified industry’s 27.2% decline.

Let’s see how things are shaping up for this announcement.

What do MEOH’s Revenue Estimates Say?

The Zacks Consensus Estimate for third-quarter consolidated revenues for Methanex is currently pegged at $974 million, reflecting a year-over-year rise of 4.2%.

Factors at Play for MEOH

The company’s third-quarter performance is likely to have benefited from higher methanol sales volumes. Volumes are expected to have been driven by higher methanol demand. In the second quarter, global methanol demand increased by about 4% compared to the previous quarter, led by strong growth in China across all applications, per MEOH. Higher methanol to olefins operating rates also supported demand. The momentum is expected to have continued in the third quarter, driving the company’s profitability.  

Weaker methanol prices are expected to have weighed on MEOH’s results in the September quarter. Its average realized price was $374 per ton in the second quarter, down from $404 per ton in the prior quarter. The company expects prices to decline in the third quarter. Our estimate for third-quarter average realized price for methanol stands at $345 per ton, indicating a 3% year-over-year decline.

Methanex Corporation Price and EPS Surprise

Methanex Corporation price-eps-surprise | Methanex Corporation Quote

What Our Model Unveils for MEOH Stock

Our proven model does not conclusively predict an earnings beat for Methanex this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here.

Earnings ESP: Earnings ESP for MEOH is +22.53%. The Zacks Consensus Estimate for the third quarter is currently pegged at 51 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: MEOH currently carries a Zacks Rank #5 (Strong Sell).

Basic Materials Stocks That Warrant a Look

Here are some companies in the basic materials space you may want to consider as our model shows they have the right combination of elements to post an earnings beat this quarter:

Agnico Eagle Mines Limited AEM, scheduled to release earnings on Oct. 29, has an Earnings ESP of +11.44% and carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

The consensus estimate for AEM’s earnings for the third quarter is currently pegged at $1.76.

Kinross Gold Corporation KGC, scheduled to release earnings on Nov. 4, has an Earnings ESP of +13.46%.

The Zacks Consensus Estimate for KGC's earnings for the third quarter is currently pegged at 33 cents. KGC currently carries a Zacks Rank #1. 

Barrick Mining Corporation B, slated to release earnings on Nov. 10, has an Earnings ESP of +2.93% and carries a Zacks Rank #3 at present.

The consensus mark for B’s third-quarter earnings is currently pegged at 57 cents.

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This article originally published on Zacks Investment Research (zacks.com).

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