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The company beat the Zacks Consensus Estimate for earnings in three of the last four quarters while missing in one quarter. FMC has a trailing four-quarter earnings surprise of around 0.3%, on average. The company reported a negative earnings surprise of around 15.3% in the last reported quarter.
FMC's third-quarter performance is likely to have been impacted by inventory de-stocking initiated by growers in the distribution channel in all regions. The company's financials are expected to have received support from cost-saving and pricing measures.
Shares of FMC have plunged 51.4% in the past year against a 7.3% fall of the industry.
Image Source: Zacks Investment Research
What Do the Estimates Say?
FMC, earlier this month, revised its revenue expectations for the third quarter to $982 million. Similarly, adjusted EBITDA for the quarter is now projected to be $175 million with adjusted earnings per share of 44 cents.
The Zacks Consensus Estimate for third-quarter sales for FMC is currently pegged at $981.9 million, suggesting a 28.7% year-over-year fall.
The consensus estimate for North America revenues is currently pegged at $263 million, suggesting a 9.1% year-over-year rise.
The Zacks Consensus Estimate for Latin America sales is pegged at $393 million, indicating a 43.6% year-over-year plunge.
The consensus estimate for Europe, the Middle East and Africa sales stands at $174 million, calling for a 15.2% year-over-year rise.
The same for Asia is pegged at $264 million, indicating an 8.3% decline on a year-over-year basis.
Some Factors at Play
The company is combatting cost inflation by implementing price increases, generating a 3% pricing boost in the second quarter of 2023, particularly in the EMEA region. Price actions are expected to have supported the company’s third-quarter performance. It is also likely to have benefited from improved input costs and cost-control measures.
The company is likely to have faced challenges from inventory de-stocking caused by growers within the distribution channel, especially in Latin America. The company saw significantly lower sales volumes in Latin America in the third quarter, particularly due to destocking in Brazil and, to a lesser extent, drought in Argentina. Lower volumes are expected to have weighed on FMC’s third-quarter results.
Zacks Model
Our proven model does not predict an earnings beat for FMC this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earning beat.
Earnings ESP: Earnings ESP for FMC is -33.82%. The Zacks Consensus Estimate for the third quarter is currently pegged at 68 cents. 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 #5 (Strong Sell).
Here are some companies in the basic materials space you may want to consider, as our model shows these have the right combination of elements to post earnings beat this quarter:
The Zacks Consensus Estimate for IAG’s third-quarter earnings is pegged at a loss of 3 cents.
Ashland Inc. (ASH - Free Report) , expected to release earnings on Nov 6, has an Earnings ESP of +10.78% and carries a Zacks Rank #3 at present.
The consensus mark for ASH’s fiscal fourth-quarter earnings is currently pegged at 99 cents.
CF Industries Holdings, Inc. (CF - Free Report) , which is slated to release its earnings on Nov 1, has an Earnings ESP of +4.79% and a Zacks Rank #3 at present.
The consensus estimate for CF’s third-quarter earnings is currently pegged at 94 cents.
Image: Bigstock
FMC Gears Up to Report Q3 Earnings: What's in the Cards?
FMC Corporation (FMC - Free Report) will release third-quarter 2023 results after the closing bell on Oct 30.
The company beat the Zacks Consensus Estimate for earnings in three of the last four quarters while missing in one quarter. FMC has a trailing four-quarter earnings surprise of around 0.3%, on average. The company reported a negative earnings surprise of around 15.3% in the last reported quarter.
FMC's third-quarter performance is likely to have been impacted by inventory de-stocking initiated by growers in the distribution channel in all regions. The company's financials are expected to have received support from cost-saving and pricing measures.
Shares of FMC have plunged 51.4% in the past year against a 7.3% fall of the industry.
Image Source: Zacks Investment Research
What Do the Estimates Say?
FMC, earlier this month, revised its revenue expectations for the third quarter to $982 million. Similarly, adjusted EBITDA for the quarter is now projected to be $175 million with adjusted earnings per share of 44 cents.
The Zacks Consensus Estimate for third-quarter sales for FMC is currently pegged at $981.9 million, suggesting a 28.7% year-over-year fall.
The consensus estimate for North America revenues is currently pegged at $263 million, suggesting a 9.1% year-over-year rise.
The Zacks Consensus Estimate for Latin America sales is pegged at $393 million, indicating a 43.6% year-over-year plunge.
The consensus estimate for Europe, the Middle East and Africa sales stands at $174 million, calling for a 15.2% year-over-year rise.
The same for Asia is pegged at $264 million, indicating an 8.3% decline on a year-over-year basis.
Some Factors at Play
The company is combatting cost inflation by implementing price increases, generating a 3% pricing boost in the second quarter of 2023, particularly in the EMEA region. Price actions are expected to have supported the company’s third-quarter performance. It is also likely to have benefited from improved input costs and cost-control measures.
The company is likely to have faced challenges from inventory de-stocking caused by growers within the distribution channel, especially in Latin America. The company saw significantly lower sales volumes in Latin America in the third quarter, particularly due to destocking in Brazil and, to a lesser extent, drought in Argentina. Lower volumes are expected to have weighed on FMC’s third-quarter results.
Zacks Model
Our proven model does not predict an earnings beat for FMC this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earning beat.
Earnings ESP: Earnings ESP for FMC is -33.82%. The Zacks Consensus Estimate for the third quarter is currently pegged at 68 cents. 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 #5 (Strong Sell).
FMC Corporation Price and EPS Surprise
FMC Corporation price-eps-surprise | FMC Corporation Quote
Stocks That Warrant a Look
Here are some companies in the basic materials space you may want to consider, as our model shows these have the right combination of elements to post earnings beat this quarter:
IAMGOLD Corporation (IAG - Free Report) , slated to release earnings on Nov 9, has an Earnings ESP of +10.71% and carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks Rank #1 stocks here.
The Zacks Consensus Estimate for IAG’s third-quarter earnings is pegged at a loss of 3 cents.
Ashland Inc. (ASH - Free Report) , expected to release earnings on Nov 6, has an Earnings ESP of +10.78% and carries a Zacks Rank #3 at present.
The consensus mark for ASH’s fiscal fourth-quarter earnings is currently pegged at 99 cents.
CF Industries Holdings, Inc. (CF - Free Report) , which is slated to release its earnings on Nov 1, has an Earnings ESP of +4.79% and a Zacks Rank #3 at present.
The consensus estimate for CF’s third-quarter earnings is currently pegged at 94 cents.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.