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FMC (FMC) Misses Q3 Earnings and Revenue Estimates
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FMC Corporation (FMC - Free Report) recorded a loss of 3 cents per share in third-quarter 2023, narrower from a profit of 95 cents reported in the year-ago quarter.
Barring one-time items, adjusted earnings per share were 44 cents, missing the Zacks Consensus Estimate of 45 cents.
Revenues were $981.9 million in the quarter, down around 29% from the year-ago quarter’s levels. The top line fell short of the Zacks Consensus Estimate of $982 million.
The quarter's revenues were primarily influenced by a 26% decline in volume. Price hikes in North America, EMEA and Asia contributed positively, although price reductions in Latin America outweighed them. Foreign exchange effects had no significant impact on revenues.
Sales dropped 34% year over year in North America to $160 million in the quarter as partners, the distribution channel and growers reduced inventory. It missed the consensus estimate of $263.5 million.
Sales in Latin America fell 33% year over year to $466 million in the reported quarter. This decrease was primarily attributed to reduced volumes, mainly as a result of extensive destocking in Brazil and, to a lesser extent, drought conditions in Argentina. It beat the consensus estimate of $393.1 million.
In the quarter, revenues in Asia witnessed a year-over-year decline of 28%, amounting to $207 million. This decrease was primarily due to ongoing destocking activities across the region. It missed the Zacks Consensus Estimate of $263.5 million.
In EMEA, sales fell 1% year over year to $149 million in the reported quarter. The decline in volumes was mitigated by higher pricing and favorable currency effects. It was below the Zacks Consensus Estimate of $174.4 million.
Financials
The company had cash and cash equivalents of $323.8 million at the end of the quarter, down roughly 11% year over year. Long-term debt was $3,022.9 million, up around 10.6% year over year.
The company returned around $73 million to its shareholders through dividends during the quarter.
Guidance
For 2023, FMC expects revenues in the range of $4.48-$4.72 billion, indicating a decline of 21% at the midpoint from 2022 levels. The company expects adjusted EBITDA in the band of $0.97-$1.03billion, indicating a 29% year-over-year decline at the midpoint. FMC now projects adjusted earnings per share for 2023 in the range of $3.57-$4.13, suggesting a decrease of 48% at the midpoint from the 2022 level.
The company revised its full-year free cash flow projection to a range between –$860 million and –$640 million. This adjustment is a result of the anticipated decrease in second-half EBITDA and the effects on working capital stemming from increased inventory and decreased payables.
The company expects fourth-quarter revenues to be in the range of $1.14-$1.38 billion, indicating a 22% fall at the midpoint from the year-ago quarter’s levels. The company also predicts adjusted EBITDA for the fourth quarter to be in the range of $246-$306 million. This represents a 36% plunge at the midpoint when compared with the year-ago period’s figures. Adjusted EPS is forecast in the range of $0.89-$1.38 per share, indicating a 52% plunge from earnings reported in the fourth quarter of 2022.
Price Performance
FMC’s shares have lost 51.3% in the past year against a 5.8% decline of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
FMC currently carries a Zacks Rank #5 (Strong Sell).
The Zacks Consensus Estimate for ANDE's current-year earnings has been revised 3.3% upward in the past 90 days. Andersons beat the Zacks Consensus Estimate in each of the last four quarters. It delivered a trailing four-quarter earnings surprise of 64.4% on average. ANDE shares have rallied around 40.7% in a year.
In the past 60 days, the Zacks Consensus Estimate for WestRock’s current fiscal year has been revised upward by 5.2%. WRK beat the Zacks Consensus Estimate in three of the last four quarters while missing in one quarter, with the average earnings surprise being 30.7%. The company’s shares have rallied 4% in the past year.
The consensus estimate for Koppers’ current fiscal year earnings is pegged at $4.45, indicating year-over-year growth of 7.5%. KOP beat the Zacks Consensus Estimate in all of the last four quarters, with the average earnings surprise being 21.7%. The company’s shares have surged 45.6% in the past year.
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FMC (FMC) Misses Q3 Earnings and Revenue Estimates
FMC Corporation (FMC - Free Report) recorded a loss of 3 cents per share in third-quarter 2023, narrower from a profit of 95 cents reported in the year-ago quarter.
Barring one-time items, adjusted earnings per share were 44 cents, missing the Zacks Consensus Estimate of 45 cents.
Revenues were $981.9 million in the quarter, down around 29% from the year-ago quarter’s levels. The top line fell short of the Zacks Consensus Estimate of $982 million.
The quarter's revenues were primarily influenced by a 26% decline in volume. Price hikes in North America, EMEA and Asia contributed positively, although price reductions in Latin America outweighed them. Foreign exchange effects had no significant impact on revenues.
FMC Corporation Price, Consensus and EPS Surprise
FMC Corporation price-consensus-eps-surprise-chart | FMC Corporation Quote
Regional Sales Performance
Sales dropped 34% year over year in North America to $160 million in the quarter as partners, the distribution channel and growers reduced inventory. It missed the consensus estimate of $263.5 million.
Sales in Latin America fell 33% year over year to $466 million in the reported quarter. This decrease was primarily attributed to reduced volumes, mainly as a result of extensive destocking in Brazil and, to a lesser extent, drought conditions in Argentina. It beat the consensus estimate of $393.1 million.
In the quarter, revenues in Asia witnessed a year-over-year decline of 28%, amounting to $207 million. This decrease was primarily due to ongoing destocking activities across the region. It missed the Zacks Consensus Estimate of $263.5 million.
In EMEA, sales fell 1% year over year to $149 million in the reported quarter. The decline in volumes was mitigated by higher pricing and favorable currency effects. It was below the Zacks Consensus Estimate of $174.4 million.
Financials
The company had cash and cash equivalents of $323.8 million at the end of the quarter, down roughly 11% year over year. Long-term debt was $3,022.9 million, up around 10.6% year over year.
The company returned around $73 million to its shareholders through dividends during the quarter.
Guidance
For 2023, FMC expects revenues in the range of $4.48-$4.72 billion, indicating a decline of 21% at the midpoint from 2022 levels. The company expects adjusted EBITDA in the band of $0.97-$1.03billion, indicating a 29% year-over-year decline at the midpoint. FMC now projects adjusted earnings per share for 2023 in the range of $3.57-$4.13, suggesting a decrease of 48% at the midpoint from the 2022 level.
The company revised its full-year free cash flow projection to a range between –$860 million and –$640 million. This adjustment is a result of the anticipated decrease in second-half EBITDA and the effects on working capital stemming from increased inventory and decreased payables.
The company expects fourth-quarter revenues to be in the range of $1.14-$1.38 billion, indicating a 22% fall at the midpoint from the year-ago quarter’s levels. The company also predicts adjusted EBITDA for the fourth quarter to be in the range of $246-$306 million. This represents a 36% plunge at the midpoint when compared with the year-ago period’s figures. Adjusted EPS is forecast in the range of $0.89-$1.38 per share, indicating a 52% plunge from earnings reported in the fourth quarter of 2022.
Price Performance
FMC’s shares have lost 51.3% in the past year against a 5.8% decline of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
FMC currently carries a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks in the Basic Materials space are The Andersons Inc. (ANDE - Free Report) , sporting a Zacks Rank #1 (Strong Buy) and WestRock Company (WRK - Free Report) and Koppers Holdings Inc. (KOP - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for ANDE's current-year earnings has been revised 3.3% upward in the past 90 days. Andersons beat the Zacks Consensus Estimate in each of the last four quarters. It delivered a trailing four-quarter earnings surprise of 64.4% on average. ANDE shares have rallied around 40.7% in a year.
In the past 60 days, the Zacks Consensus Estimate for WestRock’s current fiscal year has been revised upward by 5.2%. WRK beat the Zacks Consensus Estimate in three of the last four quarters while missing in one quarter, with the average earnings surprise being 30.7%. The company’s shares have rallied 4% in the past year.
The consensus estimate for Koppers’ current fiscal year earnings is pegged at $4.45, indicating year-over-year growth of 7.5%. KOP beat the Zacks Consensus Estimate in all of the last four quarters, with the average earnings surprise being 21.7%. The company’s shares have surged 45.6% in the past year.