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FMC Corp (FMC) Up 5.7% Since Earnings Report: Can It Continue?
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A month has gone by since the last earnings report for FMC Corporation (FMC - Free Report) . Shares have added about 5.7% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to the stock's next earnings release, or is it 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 catalysts.
First-Quarter Highlights
FMC Corp. swung to a loss (on a reported basis) of $124 million or $0.92 per share in first-quarter 2017 from a profit of $48 million or $0.36 per share a year ago.
Barring one-time items, earnings came in at $0.43 per share in the quarter, missing the Zacks Consensus Estimate of $0.56.
The company’s revenues fell roughly 2% year over year to $596 million in the reported quarter. Sales also missed the Zacks Consensus Estimate of $743 million.
The results from the company’s Health & Nutrition segment have been reported as discontinued operations. The company’s adjusted earnings for the first quarter exclude around $0.21 attributable to the reporting of the Health & Nutrition unit in discontinued operations. Revenues for the quarter also exclude $177 million attributable to Health & Nutrition.
Segment Review
Revenues from the Agricultural Solutions division fell around 3% year over year to $530 million in the reported quarter as reduced sales across Latin America and Europe more than offset gains in Asia and North America. Segment profits were $83 million, up 1% year over year, supported by better product mix and favorable currency impact.
Revenues from the Lithium unit went up 9% to $66 million. Segment earnings surged 45% year over year to $22 million, aided by higher prices and better mix.
Balance Sheet
FMC Corp. ended the quarter with cash and cash equivalents of $96.1 million, up around 50% year over year. Long-term debt was $1,790.4 million, down around 10% year over year.
Outlook
FMC Corp. sees adjusted earnings in the band of $2.20 to $2.60 per share for 2017, down from $3.20 to $3.60 per share expected earlier. The outlook excludes any benefit from the proposed DuPont transaction.
For the Agricultural Solutions unit, FMC Corp. continues to expect revenues in the range of $2.2-$2.4 billion for 2017. Segment earnings for the year are expected to be in the band of $410 million to $450 million. Earnings for second-quarter 2017 have been projected in the range of $80-$100 million, reflecting a decrease of around 11% at the mid-point compared with the prior year quarter.
FMC Corp. now sees revenues in the range of $325-$365 million (up from $315-$355 million expected earlier) for the Lithium unit for 2017. Segment earnings are forecast to be in the band of $100-$120 million (up from $90-$110 million expected earlier) for the full year. For the second quarter, earnings are expected to be in the range of $19-$23 million, reflecting an increase of around 27% at the mid-point compared with the prior year quarter.
The company has excluded its Health & Nutrition unit from its second-quarter and full-year 2017 guidance.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed a downward trend in fresh estimates. There have been seven revisions lower for the current quarter. In the past month, the consensus estimate has shifted downward by 42.2% due to these changes.
At this time, FMC Corp's stock has an average Growth Score of 'C', though it is lagging a lot on the momentum front with an 'F'. Following the exact same course, the stock was allocated also a grade of 'F' on the value side, putting it in the lowest quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'F'. If you aren't focused on one strategy, this score is the one you should be interested in.
The company's stock is suitable solely for growth based on our styles scores.
Outlook
Estimates have been broadly trending downward for the stock. The magnitude of this revision also indicates a downward shift. Interestingly, the stock has a Zacks Rank #3 (Hold). We are looking for an inline return from the stock in the next few months.
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FMC Corp (FMC) Up 5.7% Since Earnings Report: Can It Continue?
A month has gone by since the last earnings report for FMC Corporation (FMC - Free Report) . Shares have added about 5.7% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to the stock's next earnings release, or is it 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 catalysts.
First-Quarter Highlights
FMC Corp. swung to a loss (on a reported basis) of $124 million or $0.92 per share in first-quarter 2017 from a profit of $48 million or $0.36 per share a year ago.
Barring one-time items, earnings came in at $0.43 per share in the quarter, missing the Zacks Consensus Estimate of $0.56.
The company’s revenues fell roughly 2% year over year to $596 million in the reported quarter. Sales also missed the Zacks Consensus Estimate of $743 million.
The results from the company’s Health & Nutrition segment have been reported as discontinued operations. The company’s adjusted earnings for the first quarter exclude around $0.21 attributable to the reporting of the Health & Nutrition unit in discontinued operations. Revenues for the quarter also exclude $177 million attributable to Health & Nutrition.
Segment Review
Revenues from the Agricultural Solutions division fell around 3% year over year to $530 million in the reported quarter as reduced sales across Latin America and Europe more than offset gains in Asia and North America. Segment profits were $83 million, up 1% year over year, supported by better product mix and favorable currency impact.
Revenues from the Lithium unit went up 9% to $66 million. Segment earnings surged 45% year over year to $22 million, aided by higher prices and better mix.
Balance Sheet
FMC Corp. ended the quarter with cash and cash equivalents of $96.1 million, up around 50% year over year. Long-term debt was $1,790.4 million, down around 10% year over year.
Outlook
FMC Corp. sees adjusted earnings in the band of $2.20 to $2.60 per share for 2017, down from $3.20 to $3.60 per share expected earlier. The outlook excludes any benefit from the proposed DuPont transaction.
For the Agricultural Solutions unit, FMC Corp. continues to expect revenues in the range of $2.2-$2.4 billion for 2017. Segment earnings for the year are expected to be in the band of $410 million to $450 million. Earnings for second-quarter 2017 have been projected in the range of $80-$100 million, reflecting a decrease of around 11% at the mid-point compared with the prior year quarter.
FMC Corp. now sees revenues in the range of $325-$365 million (up from $315-$355 million expected earlier) for the Lithium unit for 2017. Segment earnings are forecast to be in the band of $100-$120 million (up from $90-$110 million expected earlier) for the full year. For the second quarter, earnings are expected to be in the range of $19-$23 million, reflecting an increase of around 27% at the mid-point compared with the prior year quarter.
The company has excluded its Health & Nutrition unit from its second-quarter and full-year 2017 guidance.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed a downward trend in fresh estimates. There have been seven revisions lower for the current quarter. In the past month, the consensus estimate has shifted downward by 42.2% due to these changes.
FMC Corporation Price and Consensus
FMC Corporation Price and Consensus | FMC Corporation Quote
VGM Scores
At this time, FMC Corp's stock has an average Growth Score of 'C', though it is lagging a lot on the momentum front with an 'F'. Following the exact same course, the stock was allocated also a grade of 'F' on the value side, putting it in the lowest quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'F'. If you aren't focused on one strategy, this score is the one you should be interested in.
The company's stock is suitable solely for growth based on our styles scores.
Outlook
Estimates have been broadly trending downward for the stock. The magnitude of this revision also indicates a downward shift. Interestingly, the stock has a Zacks Rank #3 (Hold). We are looking for an inline return from the stock in the next few months.