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FMC Corp (FMC) Misses Q4 Earnings and Revenue Estimates
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FMC Corporation (FMC - Free Report) reported earnings of $8.77 per share in fourth-quarter 2023 compared with $2.17 reported in the year-ago quarter.
Barring one-time items, adjusted earnings per share were $1.07, missing the Zacks Consensus Estimate of $1.09.
Revenues were $1,146.1 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 $1,249.2 million.
A 25% decline in volumes impacted FMC’s revenues in the fourth quarter. A 5% decline in pricing was partly offset by a 1% currency tailwind. Sales of products launched in the last five years accounted for 14% of total revenues in the quarter.
In North America, sales plummeted 37% year over year to $275 million in the quarter on reduced volumes, impacted by inventory de-stocking.
Latin American sales saw a 38% year-over-year decline to $433 million in the reported quarter, primarily due to reduced volume stemming from weaker demand and adverse weather conditions in Brazil.
In Asia, revenues remained unchanged compared to the previous year, totaling $278 million, with growth in fungicides offsetting flat sales in branded diamides.
EMEA experienced a 24% year-over-year sales drop to $160 million in the reported quarter, driven by volume declines resulting from channel destocking, particularly in herbicides. However, this was partly mitigated by a low-to-mid single-digit price increase and robust growth in branded diamides.
FY23 Results
In the full year, FMC reported revenue amounting to $4,486.8 million, marking a 23% decrease compared to 2022. Excluding the FX impact, organic year-over-year sales declined by 22%. On a reported basis, the company posted full-year net income of $1,321.5 million, showing a remarkable 78% increase over the previous year, primarily driven by one-time tax benefits reported in the fourth quarter. Consolidated earnings per share stood at $10.53, up 81% year over year. However, full-year adjusted earnings reached $3.78 per share, down 49% from 2022 levels.
Financials
The company had cash and cash equivalents of $302.4 million at the end of the quarter, down roughly 47% year over year. Long-term debt was $3,023.6 million, up around 10.6% year over year.
Guidance
FMC forecasts full-year 2024 revenues between $4.50 billion and $4.70 billion, indicating a 2.5% increase at the midpoint compared to 2023, mainly fueled by new product growth in the second half. Adjusted EBITDA is expected to range between $900 million and $1.05 billion, flat at the midpoint compared to the prior year, with headwinds in the first half offset by second-half tailwinds. Adjusted EPS is forecast between $3.23 to $4.41 per share, up 1% year-over-year at the midpoint due to lower interest expense and D&A. Full-year free cash flow is anticipated to be $400 million to $600 million, driven by the rebuilding of payables and lower inventory.
FMC also forecasts first-quarter revenues to be between $925 million and $1.075 billion, reflecting a 26% decrease at the midpoint compared to the first quarter of 2023, driven by lower volume due to destocking across all regions. Price is expected to present a low-to-mid single-digit headwind, primarily in Latin America and Asia. Adjusted EBITDA is forecast to range from $135-$165 million, suggesting a 59% decline at the midpoint versus the prior-year period’s levels. The downtick is likely to be caused by lower sales and gross margin impacts from high-cost inventory carried over from the previous year. Adjusted EPS are expected in the range of 21-43 cents in the first quarter, calling for an 82% plunge at the midpoint compared with first-quarter 2023 levels, mainly due to lower adjusted EBITDA.
Price Performance
FMC’s shares have lost 52.1% in the past year against an 18.4% decline of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
FMC currently carries a Zacks Rank #5 (Strong Sell).
Cameco has a projected earnings growth rate of 188% for the current year. The Zacks Consensus Estimate for CCJ’s current-year earnings has been revised upward by 12.5% in the past 60 days. The stock is up around 77.2% in a year.
The consensus estimate for CRS’s current fiscal year earnings is pegged at $3.97, indicating a year-over-year surge of 248.3%. CRS beat the Zacks Consensus Estimate in all of the last four quarters, with the average earnings surprise being 14.3%. The company’s shares have rallied 19% in the past year.
The consensus estimate for APD’s current fiscal year earnings is pegged at $13, indicating a year-over-year rise of 13%. APD beat the Zacks Consensus Estimate in three of the last four quarters and missed one, with the average earnings surprise being 1%.
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FMC Corp (FMC) Misses Q4 Earnings and Revenue Estimates
FMC Corporation (FMC - Free Report) reported earnings of $8.77 per share in fourth-quarter 2023 compared with $2.17 reported in the year-ago quarter.
Barring one-time items, adjusted earnings per share were $1.07, missing the Zacks Consensus Estimate of $1.09.
Revenues were $1,146.1 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 $1,249.2 million.
A 25% decline in volumes impacted FMC’s revenues in the fourth quarter. A 5% decline in pricing was partly offset by a 1% currency tailwind. Sales of products launched in the last five years accounted for 14% of total revenues in the quarter.
FMC Corporation Price, Consensus and EPS Surprise
FMC Corporation price-consensus-eps-surprise-chart | FMC Corporation Quote
Regional Sales Performance
In North America, sales plummeted 37% year over year to $275 million in the quarter on reduced volumes, impacted by inventory de-stocking.
Latin American sales saw a 38% year-over-year decline to $433 million in the reported quarter, primarily due to reduced volume stemming from weaker demand and adverse weather conditions in Brazil.
In Asia, revenues remained unchanged compared to the previous year, totaling $278 million, with growth in fungicides offsetting flat sales in branded diamides.
EMEA experienced a 24% year-over-year sales drop to $160 million in the reported quarter, driven by volume declines resulting from channel destocking, particularly in herbicides. However, this was partly mitigated by a low-to-mid single-digit price increase and robust growth in branded diamides.
FY23 Results
In the full year, FMC reported revenue amounting to $4,486.8 million, marking a 23% decrease compared to 2022. Excluding the FX impact, organic year-over-year sales declined by 22%. On a reported basis, the company posted full-year net income of $1,321.5 million, showing a remarkable 78% increase over the previous year, primarily driven by one-time tax benefits reported in the fourth quarter. Consolidated earnings per share stood at $10.53, up 81% year over year. However, full-year adjusted earnings reached $3.78 per share, down 49% from 2022 levels.
Financials
The company had cash and cash equivalents of $302.4 million at the end of the quarter, down roughly 47% year over year. Long-term debt was $3,023.6 million, up around 10.6% year over year.
Guidance
FMC forecasts full-year 2024 revenues between $4.50 billion and $4.70 billion, indicating a 2.5% increase at the midpoint compared to 2023, mainly fueled by new product growth in the second half. Adjusted EBITDA is expected to range between $900 million and $1.05 billion, flat at the midpoint compared to the prior year, with headwinds in the first half offset by second-half tailwinds. Adjusted EPS is forecast between $3.23 to $4.41 per share, up 1% year-over-year at the midpoint due to lower interest expense and D&A. Full-year free cash flow is anticipated to be $400 million to $600 million, driven by the rebuilding of payables and lower inventory.
FMC also forecasts first-quarter revenues to be between $925 million and $1.075 billion, reflecting a 26% decrease at the midpoint compared to the first quarter of 2023, driven by lower volume due to destocking across all regions. Price is expected to present a low-to-mid single-digit headwind, primarily in Latin America and Asia. Adjusted EBITDA is forecast to range from $135-$165 million, suggesting a 59% decline at the midpoint versus the prior-year period’s levels. The downtick is likely to be caused by lower sales and gross margin impacts from high-cost inventory carried over from the previous year. Adjusted EPS are expected in the range of 21-43 cents in the first quarter, calling for an 82% plunge at the midpoint compared with first-quarter 2023 levels, mainly due to lower adjusted EBITDA.
Price Performance
FMC’s shares have lost 52.1% in the past year against an 18.4% 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 Cameco Corporation (CCJ - Free Report) and Carpenter Technology Corporation (CRS - Free Report) , both sporting a Zacks Rank #1 (Strong Buy), and Air Products and Chemicals, Inc. (APD - Free Report) , carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Cameco has a projected earnings growth rate of 188% for the current year. The Zacks Consensus Estimate for CCJ’s current-year earnings has been revised upward by 12.5% in the past 60 days. The stock is up around 77.2% in a year.
The consensus estimate for CRS’s current fiscal year earnings is pegged at $3.97, indicating a year-over-year surge of 248.3%. CRS beat the Zacks Consensus Estimate in all of the last four quarters, with the average earnings surprise being 14.3%. The company’s shares have rallied 19% in the past year.
The consensus estimate for APD’s current fiscal year earnings is pegged at $13, indicating a year-over-year rise of 13%. APD beat the Zacks Consensus Estimate in three of the last four quarters and missed one, with the average earnings surprise being 1%.