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FMC Corp's (FMC) Earnings and Sales Surpass Estimates in Q1

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FMC Corporation (FMC - Free Report) recorded earnings (as reported) of $1.64 per share in first-quarter 2022, up 17% from $1.40 reported in the year-ago quarter.

Barring one-time items, adjusted earnings per share were $1.88, topping the Zacks Consensus Estimate of $1.69.

Revenues were $1,350.8 million in the quarter, up around 13% from the year-ago quarter’s levels. The top line surpassed the Zacks Consensus Estimate of $1,275.4.

Revenues were driven by an 8% rise in volumes and an 8% contribution from price. The company benefited from a strong demand environment and price increase actions amid headwinds from raw material, packaging and logistics availability issues as well as higher input and labor costs.

 

FMC Corporation Price, Consensus and EPS Surprise

 

FMC Corporation Price, Consensus and EPS Surprise

FMC Corporation price-consensus-eps-surprise-chart | FMC Corporation Quote

 

Regional Sales Performance

Sales climbed 30% year over year in North America in the quarter, driven by strong volume and price growth in several crops including tree fruits, nuts, vines, corn and soy.

Sales in Latin America rose 31% year over year in the reported quarter on strong volume growth in soybean, corn and sugarcane as well as price increases and a 6% favorable currency impact.

In EMEA, sales rose 11% year over year organically driven by pricing actions across the region and healthy demand for products such as Rynaxypyr active ingredient for corn and top fruit and herbicides for sunflowers. Sales were flat including the currency impact from the weakening of the Turkish lira, the euro and other European currencies.

Revenues went up 2% year over year in Asia, aided by higher prices and strength in Australia and ASEAN countries.

Financials

The company had cash and cash equivalents of $365.1 million at the end of the quarter, down roughly 12% year over year. Long-term debt was $2,732.4 million, up around 3.8% year over year.

Guidance

For 2022, FMC continues to expect 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 also 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 now expects adjusted earnings per share for 2022 in the range of $6.70-$8.00 (compared with $6.8-$8.10 expected earlier), suggesting an increase of 6% at the midpoint from 2021 figures.

Free cash flow for 2022 is projected to be $515-$735 million. The company also expects to repurchase $500-$600 million shares in 2022.

For second-quarter 2022, revenues are projected in the band of $1.31-$1.39 billion, reflecting an increase of 9% at the midpoint compared with the prior-year quarter’s levels. Adjusted earnings are forecast in the range of $1.70-$2.00 per share, representing an increase of 2% at the midpoint from the prior-year quarter’s levels. It also expects adjusted EBITDA in the range of $330-$370 million for the quarter.

Price Performance

FMC’s shares have increased 10.7% in the past year compared with an 8.3% decline of the industry.

 

Zacks Investment Research
Image Source: Zacks Investment Research

 

Zacks Rank & Other Stocks to Consider

FMC carries a Zacks Rank #3 (Hold).

Better-ranked stocks worth considering in the basic materials space include Nutrien Ltd. (NTR - Free Report) , AdvanSix Inc. (ASIX - Free Report) and Commercial Metals Company (CMC - Free Report) .

Nutrien, sporting a Zacks Rank #1 (Strong Buy), has an expected earnings growth rate of 127.9% for the current year. The Zacks Consensus Estimate for NTR's current-year earnings has been revised 31.1% upward over the last 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.

Nutrien beat the Zacks Consensus Estimate for earnings in three of the last four quarters while missed once. It has a trailing four-quarter earnings surprise of roughly 5.9%, on average. NTR has rallied around 70% in a year.

Commercial Metals, carrying a Zacks Rank #1, has a projected earnings growth rate of 78.2% for the current fiscal year. The Zacks Consensus Estimate for CMC's current fiscal year earnings has been revised 31.9% upward over the past 60 days.

Commercial Metals beat the Zacks Consensus Estimate for earnings in three of the last four quarters while missed once. It has a trailing four-quarter earnings surprise of roughly 16%, on average. CMC has gained around 29% in a year.

AdvanSix, carrying a Zacks Rank #2 (Buy), has an expected earnings growth rate of 54.7% for the current year. ASIX's consensus estimate for current-year earnings has been revised 31.9% upward in the past 60 days.

AdvanSix beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters while missed once. It has a trailing four-quarter earnings surprise of roughly 23.6%, on average. ASIX has rallied around 41% in a year.