Why Methanex (MEOH) is Poised to Beat Earnings Estimates Again

Earnings Performance - Methanex has consistently surpassed earnings estimates in the last two quarters, with an average surprise of 100.77% [1] - In the most recent quarter, the company reported earnings of $1.21 per share, significantly higher than the expected $0.44 per share, representing a surprise of 175% [2] - For the previous quarter, Methanex reported earnings of $0.62 per share, beating the consensus estimate of $0.49 per share by 26.53% [2] Earnings ESP and Zacks Rank - Methanex currently has a positive Earnings ESP of +6.76%, indicating bullish sentiment among analysts regarding the company's earnings prospects [6] - The combination of a positive Earnings ESP and a Zacks Rank 2 (Buy) suggests a high likelihood of another earnings beat in the upcoming report [6] - Stocks with a positive Earnings ESP and a Zacks Rank 3 (Hold) or better have a nearly 70% chance of producing a positive earnings surprise [4] Analyst Estimates and Predictive Power - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate being more reflective of recent analyst revisions [5] - A negative Earnings ESP reduces the predictive power of the metric but does not necessarily indicate an earnings miss [7] - It is important to check a company's Earnings ESP before its quarterly release to increase the odds of success [8]