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Why Is FMC (FMC) Down 0.9% Since Last Earnings Report?
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It has been about a month since the last earnings report for FMC (FMC - Free Report) . Shares have lost about 0.9% in that time frame, outperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is FMC due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
FMC Corp's Earnings and Revenues Top Estimates in Q2
FMC Corp recorded earnings (as reported) of $1.06 per share in second-quarter 2022, down from $1.56 reported in the year-ago quarter.
Barring one-time items, adjusted earnings per share were $1.93, topping the Zacks Consensus Estimate of $1.90. Our estimate for the quarter was $1.91.
Revenues were $1,452.3 million in the quarter, up around 17% from the year-ago quarter’s levels. The top line surpassed the Zacks Consensus Estimate of $1,346.8 million. The figure compares to our estimate of $1,341.6 million.
Revenues were driven by a 14% rise in volumes and an 7% contribution from price. The company benefited from a strong demand environment and price gains in all regions amid significant cost and currency headwinds.
Regional Sales Performance
Sales climbed 26% year over year in North America in the quarter, driven by a double-digit growth in demand for both herbicides and insecticides.
Sales in Latin America rose 42% year over year in the reported quarter on higher volumes and significant price increases in soy, corn, cotton and sugarcane.
In EMEA, sales rose 15% year over year organically driven by strong pricing and higher demand for Exirel insecticide and Verimark insecticide as well as selective herbicides.
Revenues went up 4% year over year in Asia, partly aided by higher demand for Benevia insecticide in India for application on fruits and vegetables.
Financials
The company had cash and cash equivalents of $591.5 million at the end of the quarter, down roughly 19% year over year. Long-term debt was $2,731.7 million, up around 3.8% year over year.
Guidance
For 2022, FMC raised its revenue outlook to the range of $5.5-$5.7 billion (from $5.25-$5.55 billion), indicating a rise of 11% at the midpoint from 2021 levels. Sales are expected to be driven by higher volumes and prices in all regions partly offset by foreign currency headwinds in EMEA and Asia.
The company also narrowed adjusted EBITDA guidance to the band of $1.36-$1.44 billion for 2022 (compared with $1.32-$1.48 billion expected earlier), indicating a 6% rise at the midpoint from 2021 levels.
FMC also narrowed adjusted earnings per share forecast for 2022 to the range of $7.00-$7.70 (compared with $6.70-$8.00 expected earlier), suggesting an increase of 6% at the midpoint from the 2021 level.
Free cash flow for 2022 is now projected to be $565-$685 million.
For third-quarter 2022, revenues are projected in the band of $1.31-$1.39 billion, reflecting an increase of 13% at the midpoint compared with the prior-year quarter’s levels. Adjusted earnings are forecast in the range of $1.00-$1.20 per share, representing a decline of 23% at the midpoint from the prior-year quarter’s levels. The company also expects adjusted EBITDA in the range of $235-$255 million for the quarter.
The company also sees fourth-quarter revenues in the range of $1.39-1.51 billion, reflecting a 2% rise at the midpoint compared with the prior-year quarter’s levels. Adjusted earnings are forecast in the range of $2.18-$2.70 per share, representing a rise of 13% at the midpoint from the prior-year quarter’s levels. It also expects adjusted EBITDA in the range of $411-$471 million for the quarter.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
The consensus estimate has shifted -27.74% due to these changes.
VGM Scores
Currently, FMC has an average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. 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.
Performance of an Industry Player
FMC is part of the Zacks Chemical - Diversified industry. Over the past month, Olin (OLN - Free Report) , a stock from the same industry, has gained 7.2%. The company reported its results for the quarter ended June 2022 more than a month ago.
Olin reported revenues of $2.62 billion in the last reported quarter, representing a year-over-year change of +17.8%. EPS of $2.76 for the same period compares with $1.73 a year ago.
For the current quarter, Olin is expected to post earnings of $2.20 per share, indicating a change of -7.6% from the year-ago quarter. The Zacks Consensus Estimate has changed -6.4% over the last 30 days.
Olin has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A.
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Why Is FMC (FMC) Down 0.9% Since Last Earnings Report?
It has been about a month since the last earnings report for FMC (FMC - Free Report) . Shares have lost about 0.9% in that time frame, outperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is FMC due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
FMC Corp's Earnings and Revenues Top Estimates in Q2
FMC Corp recorded earnings (as reported) of $1.06 per share in second-quarter 2022, down from $1.56 reported in the year-ago quarter.
Barring one-time items, adjusted earnings per share were $1.93, topping the Zacks Consensus Estimate of $1.90. Our estimate for the quarter was $1.91.
Revenues were $1,452.3 million in the quarter, up around 17% from the year-ago quarter’s levels. The top line surpassed the Zacks Consensus Estimate of $1,346.8 million. The figure compares to our estimate of $1,341.6 million.
Revenues were driven by a 14% rise in volumes and an 7% contribution from price. The company benefited from a strong demand environment and price gains in all regions amid significant cost and currency headwinds.
Regional Sales Performance
Sales climbed 26% year over year in North America in the quarter, driven by a double-digit growth in demand for both herbicides and insecticides.
Sales in Latin America rose 42% year over year in the reported quarter on higher volumes and significant price increases in soy, corn, cotton and sugarcane.
In EMEA, sales rose 15% year over year organically driven by strong pricing and higher demand for Exirel insecticide and Verimark insecticide as well as selective herbicides.
Revenues went up 4% year over year in Asia, partly aided by higher demand for Benevia insecticide in India for application on fruits and vegetables.
Financials
The company had cash and cash equivalents of $591.5 million at the end of the quarter, down roughly 19% year over year. Long-term debt was $2,731.7 million, up around 3.8% year over year.
Guidance
For 2022, FMC raised its revenue outlook to the range of $5.5-$5.7 billion (from $5.25-$5.55 billion), indicating a rise of 11% at the midpoint from 2021 levels. Sales are expected to be driven by higher volumes and prices in all regions partly offset by foreign currency headwinds in EMEA and Asia.
The company also narrowed adjusted EBITDA guidance to the band of $1.36-$1.44 billion for 2022 (compared with $1.32-$1.48 billion expected earlier), indicating a 6% rise at the midpoint from 2021 levels.
FMC also narrowed adjusted earnings per share forecast for 2022 to the range of $7.00-$7.70 (compared with $6.70-$8.00 expected earlier), suggesting an increase of 6% at the midpoint from the 2021 level.
Free cash flow for 2022 is now projected to be $565-$685 million.
For third-quarter 2022, revenues are projected in the band of $1.31-$1.39 billion, reflecting an increase of 13% at the midpoint compared with the prior-year quarter’s levels. Adjusted earnings are forecast in the range of $1.00-$1.20 per share, representing a decline of 23% at the midpoint from the prior-year quarter’s levels. The company also expects adjusted EBITDA in the range of $235-$255 million for the quarter.
The company also sees fourth-quarter revenues in the range of $1.39-1.51 billion, reflecting a 2% rise at the midpoint compared with the prior-year quarter’s levels. Adjusted earnings are forecast in the range of $2.18-$2.70 per share, representing a rise of 13% at the midpoint from the prior-year quarter’s levels. It also expects adjusted EBITDA in the range of $411-$471 million for the quarter.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
The consensus estimate has shifted -27.74% due to these changes.
VGM Scores
Currently, FMC has an average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. 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.
Performance of an Industry Player
FMC is part of the Zacks Chemical - Diversified industry. Over the past month, Olin (OLN - Free Report) , a stock from the same industry, has gained 7.2%. The company reported its results for the quarter ended June 2022 more than a month ago.
Olin reported revenues of $2.62 billion in the last reported quarter, representing a year-over-year change of +17.8%. EPS of $2.76 for the same period compares with $1.73 a year ago.
For the current quarter, Olin is expected to post earnings of $2.20 per share, indicating a change of -7.6% from the year-ago quarter. The Zacks Consensus Estimate has changed -6.4% over the last 30 days.
Olin has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A.