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FMC Corp (FMC) Q3 Earnings Top Estimates, Revenues In Line
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FMC Corp. (FMC - Free Report) reported a profit of $79.7 million or 59 cents per share in third-quarter 2016 versus a loss of $2.4 million or 2 cents per share logged a year ago.
Barring one-time items including restructuring charges, earnings came in at 67 cents per share in the quarter, topping the Zacks Consensus Estimate of 58 cents. Adjusted earnings also increased from 42 cents per share a year ago.
The chemical maker’s revenues fell roughly 3% year over year to $807.7 million in the reported quarter. Sales were in line with the Zacks Consensus Estimate.
Revenues from the Agricultural Solutions division fell around 3% year over year to $558.9 million in the quarter owing to lower volumes. Segment profits were $90 million, up 52% year over year, as improved pricing and favorable currency impact more than offset higher costs and reduced sales volumes.
Health and Nutrition segment’s sales slipped roughly 9% year over year to $178.9 million in the quarter. Segment profit fell 4% year over year to $45 million. Sales and earnings were hit by reduced Omega-3 sales.
Revenues from the Lithium unit climbed 22% to $69.9 million. Segment earnings jumped nine-fold year over year to $18 million, aided by higher prices, lower operating costs and the devaluation of the Argentinean peso.
Balance Sheet
FMC Corp. ended the quarter with cash and cash equivalents of $130.7 million, down around 25% year over year. Long-term debt was $1,913.3 million, down around 7% year over year.
Outlook
FMC Corp. sees adjusted earnings in the band of $2.76 to $2.86 per share for 2016.
The company expects revenues in the range of $2.2−$2.4 billion for its Agricultural Solutions unit for 2016. Segment earnings for the year are expected to be in the band of $390−$410 million. Earnings for the fourth quarter have been projected in the range of $117−$137 million.
For Health and Nutrition, the company expects revenues of between $740 million and $760 million for 2016. Segment earnings are expected to be $190−$194 million. For the fourth quarter, segment earnings are expected to be in the band of $53−$57 million.
FMC Corp. sees revenues in the range of $265−$275 million for the Lithium unit for 2016. Segment earnings are forecast to be in the band of $65−$69 million for the full year. For the fourth quarter, earnings are expected to be in the range of $16−$20 million.
Better-ranked companies in the chemical space include Innophos Holdings Inc , Koppers Holdings Inc. (KOP - Free Report) and Celanese Corporation (CE - Free Report) .
Innophos holds a Zacks Rank #1 (Strong Buy). The company has an expected earnings growth of 48.6% for the current year.
Celanese carries a Zacks Rank #2 (Buy) and has an expected earnings growth of around 9.4% for the current year.
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FMC Corp (FMC) Q3 Earnings Top Estimates, Revenues In Line
FMC Corp. (FMC - Free Report) reported a profit of $79.7 million or 59 cents per share in third-quarter 2016 versus a loss of $2.4 million or 2 cents per share logged a year ago.
Barring one-time items including restructuring charges, earnings came in at 67 cents per share in the quarter, topping the Zacks Consensus Estimate of 58 cents. Adjusted earnings also increased from 42 cents per share a year ago.
The chemical maker’s revenues fell roughly 3% year over year to $807.7 million in the reported quarter. Sales were in line with the Zacks Consensus Estimate.
Segment Review
Revenues from the Agricultural Solutions division fell around 3% year over year to $558.9 million in the quarter owing to lower volumes. Segment profits were $90 million, up 52% year over year, as improved pricing and favorable currency impact more than offset higher costs and reduced sales volumes.
Health and Nutrition segment’s sales slipped roughly 9% year over year to $178.9 million in the quarter. Segment profit fell 4% year over year to $45 million. Sales and earnings were hit by reduced Omega-3 sales.
Revenues from the Lithium unit climbed 22% to $69.9 million. Segment earnings jumped nine-fold year over year to $18 million, aided by higher prices, lower operating costs and the devaluation of the Argentinean peso.
Balance Sheet
FMC Corp. ended the quarter with cash and cash equivalents of $130.7 million, down around 25% year over year. Long-term debt was $1,913.3 million, down around 7% year over year.
Outlook
FMC Corp. sees adjusted earnings in the band of $2.76 to $2.86 per share for 2016.
The company expects revenues in the range of $2.2−$2.4 billion for its Agricultural Solutions unit for 2016. Segment earnings for the year are expected to be in the band of $390−$410 million. Earnings for the fourth quarter have been projected in the range of $117−$137 million.
For Health and Nutrition, the company expects revenues of between $740 million and $760 million for 2016. Segment earnings are expected to be $190−$194 million. For the fourth quarter, segment earnings are expected to be in the band of $53−$57 million.
FMC Corp. sees revenues in the range of $265−$275 million for the Lithium unit for 2016. Segment earnings are forecast to be in the band of $65−$69 million for the full year. For the fourth quarter, earnings are expected to be in the range of $16−$20 million.
FMC Corp. has a Zacks Rank #4 (Sell).
FMC CORP Price, Consensus and EPS Surprise
FMC CORP Price, Consensus and EPS Surprise | FMC CORP Quote
Other Stocks to Consider
Better-ranked companies in the chemical space include Innophos Holdings Inc , Koppers Holdings Inc. (KOP - Free Report) and Celanese Corporation (CE - Free Report) .
Innophos holds a Zacks Rank #1 (Strong Buy). The company has an expected earnings growth of 48.6% for the current year.
Koppers has an expected earnings growth of around 42.2% for the current year. The stock carries a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Celanese carries a Zacks Rank #2 (Buy) and has an expected earnings growth of around 9.4% for the current year.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>