Back to top

Image: Bigstock

FMC Corp (FMC) to Report Q1 Earnings: What's in the Offing?

Read MoreHide Full Article

FMC Corporation (FMC - Free Report) will release first-quarter 2021 results after the closing bell on May 5. The company’s results are likely to have been affected by lower volumes. However, new product launches and price increases are likely to have supported its performance.

The company beat the Zacks Consensus Estimate for earnings in each of the last four quarters. It has a trailing four-quarter earnings surprise of 4.7%, on average. It posted an earnings surprise of 2.9% in the last reported quarter.

Shares of FMC have gained 31.9% in the past year compared with 71.8% rise of the industry.

 


 

 

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

What do the Estimates Say?

The company expects first-quarter revenues in the band of $1.13-$1.20 billion, reflecting a decline of 7% at the midpoint compared with the prior-year quarter. Adjusted earnings are forecast in the range of $1.40-$1.60 per share, representing a decline of 18% at the midpoint compared with the prior-year quarter.

The Zacks Consensus Estimate for first-quarter sales for FMC is currently pegged at $1,170 million, which suggests a 6.4% drop year over year.

Some Factors at Play

FMC Corp is focused on boosting its market position and strengthening its product portfolio. It is investing in technologies and products as well as new launches to enhance value to the farmers. New product launches are likely to have contributed to its results in the first quarter. The company is also expected to have benefited from cost-management and price increase actions.

However, the company is likely to have faced headwind from lower volumes in the to-be-reported quarter, which might have hurt its top line. Volumes are expected to have been affected by a decline in cotton acreage in Brazil and discontinued registrations in the EMEA.

The company is also likely to have faced some headwinds from unfavorable currency translation. It sees unfavorable currency impacts on sales and EBITDA to be 2% and $15 million, respectively, for the first quarter. This might have impacted sales and margins in the quarter.

 

FMC Corporation Price and EPS Surprise

 

FMC Corporation Price and EPS Surprise

FMC Corporation price-eps-surprise | FMC Corporation Quote

 

Zacks Model

Our proven model does not conclusively predict an earnings beat for FMC 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 FMC is 0.00%. The Zacks Consensus Estimate for earnings for the first quarter is currently pegged $1.52. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: FMC currently carries a Zacks Rank #3.

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:

Westlake Chemical Corporation (WLK - Free Report) ), scheduled to release earnings on May 4, has an Earnings ESP of +0.64% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Koppers Holdings, Inc. (KOP - Free Report) , scheduled to release earnings on May 7, has an Earnings ESP of +5.26% and carries a Zacks Rank #2.

CF Industries Holdings, Inc. (CF - Free Report) , scheduled to release earnings on May 5, has an Earnings ESP of +4.53% and carries a Zacks Rank #3.
 

Breakout Biotech Stocks with Triple-Digit Profit Potential

The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.

Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.

See these 7 breakthrough stocks now>>

Published in