A month has gone by since the last earnings report for FMC (FMC Quick QuoteFMC - Free Report) . Shares have added about 2.2% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is FMC due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.

FMC Corp’s Earnings and Sales Top Estimates in Q4

FMC Corp recorded earnings (as reported) of $1.52 per share in fourth-quarter 2021, up 300% from 38 cents reported in the year-ago quarter. 

Barring one-time items, adjusted earnings per share were $2.16, topping the Zacks Consensus Estimate of $2.02.

Revenues were $1,413.6 million in the quarter, up around 22.7% from the year-ago quarter’s levels. The top line surpassed the Zacks Consensus Estimate of $1,367.6 million.

Revenues were driven by a 21% rise in volumes and a 4% contribution from price. The company benefited from a healthy demand environment and price increases.

Regional Sales Performance

Sales surged 81% year over year in North America in the quarter, driven by strong selective herbicide volumes, higher prices, new products and continued market expansion of Rynaxypyr and Cyazypyr active ingredients.

Sales in Latin America rose 30% year over year in the reported quarter on soybean and corn demand growth, higher sales of biologicals as well as increased prices.

In EMEA, sales declined 8% year over year due to the impact of a shift in global diamide partner volumes across regions.

Revenues fell 3% year over year in Asia, impacted by weather challenges in several countries, including China.

FY21 Results

Earnings (as reported) for full-year 2021 were $5.70 per share compared with $4.22 a year ago. Net sales increased 9% year over year to roughly $5.1 billion.

Financials

The company had cash and cash equivalents of $516.8 million at the end of the year, down roughly 9.2% year over year. Long-term debt was $2,731.7 million, down around 6.8% year over year.

The company repurchased shares worth $400 million in 2021.

Guidance

For 2022, FMC expects revenues between $5.25 billion and $5.55 billion, indicating a rise of 7% at the midpoint from 2021 levels. Sales are expected to be driven by higher volumes and prices in all regions.

The company forecasts adjusted EBITDA in the band of $1.32-$1.48 billion for 2022, indicating a 6% rise at the midpoint from 2021 levels.
FMC expects adjusted earnings per share for 2022 in the range of $6.8-$8.10, suggesting an increase of 8% at the midpoint from 2021 figures.

Free cash flow for 2022 is projected to be $515-$735 million.

For first-quarter 2022, revenues are projected in the band of $1.22-$1.34 billion, reflecting an increase of 7% at the midpoint compared with the prior-year quarter’s levels. Adjusted earnings are forecast in the range of $1.50-$1.90 per share, representing an increase of 11% at the midpoint from the prior-year quarter’s levels. It also expects adjusted EBITDA in the range of $300-$350 million for the quarter.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in fresh estimates.

The consensus estimate has shifted -5.04% due to these changes.

VGM Scores

Currently, FMC has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, FMC has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.