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FMC's Earnings Surpass Estimates, Revenues Lag in Q1
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FMC Corporation (FMC - Free Report) reported a loss of 2 cents per share in first-quarter 2024. This compares to earnings of $1.55 in the year-ago quarter.
Barring one-time items, adjusted earnings per share were 36 cents, beating the Zacks Consensus Estimate of 35 cents.
Revenues were $918 million in the quarter, down around 32% from the year-ago quarter’s levels. The top line fell short of the Zacks Consensus Estimate of $1,025.2 million.
A 27% decline in volumes hurt FMC’s revenues in the reported quarter. Prices also fell 4% while currency was a headwind of 1%. Sales were impacted by inventory management actions by customers across all regions.
In North America, sales tumbled 48% year over year to $259 million in the quarter on reduced volumes. It was below the consensus estimate of $318.1 million.
Latin American sales saw a 20% year-over-year decline to $188 million in the reported quarter, primarily due to reduced volumes and prices. It beat the consensus estimate of $174 million.
In Asia, revenues declined 29% compared to the previous year to $164 million, hurt by lower volumes in China due to poor weather conditions as well as reduced prices. It was below the consensus estimate of $219 million.
EMEA experienced a 20% year-over-year sales drop to $307 million in the reported quarter, driven by lower volumes partly mitigated by price increase by low-single digits. It missed the consensus estimate of $328 million.
Financials
The company had cash and cash equivalents of $417.8 million at the end of the quarter, up roughly 38% sequentially. Long-term debt was $3,024.6 million, flat sequentially.
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. Adjusted EBITDA is expected in the range of $900 million to $1.05 billion, flat at the midpoint compared to the prior year. Adjusted earnings are forecast between $3.23 to $4.41 per share, up 1% year-over-year at the midpoint. Full-year free cash flow is anticipated to be $400-$600 million.
FMC also forecasts second-quarter revenues to be between $1 billion to $1.15 billion, reflecting a 6% increase at the midpoint compared to the second quarter of 2023. Adjusted EBITDA is forecast in the band of $170-$210 million, essentially flat versus the prior-year period’s levels. Adjusted earnings are expected in the range of 43-72 cents in the second quarter, calling for a 15% rise at the midpoint compared with second-quarter 2023 levels.
Price Performance
FMC’s shares have lost 45.5% in the past year against a 3.6% decline of the industry.
The Zacks Consensus Estimate for GFI’s first-quarter earnings is pegged at 22 cents per share. The consensus estimate for GFI’s first-quarter earnings has been stable in the past 60 days.
Valvoline is slated to report fiscal second quarter results on May 8. The consensus estimate for VVV’s second-quarter earnings is pegged at 36 cents per share. The company’s shares have rallied around 27% in the past year.
American Vanguard is expected to report first-quarter results on May 14. The consensus estimate for AVD’ first-quarter earnings is pegged at 8 cents per share, indicating a year-over-year rise of 14.3%.
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FMC's Earnings Surpass Estimates, Revenues Lag in Q1
FMC Corporation (FMC - Free Report) reported a loss of 2 cents per share in first-quarter 2024. This compares to earnings of $1.55 in the year-ago quarter.
Barring one-time items, adjusted earnings per share were 36 cents, beating the Zacks Consensus Estimate of 35 cents.
Revenues were $918 million in the quarter, down around 32% from the year-ago quarter’s levels. The top line fell short of the Zacks Consensus Estimate of $1,025.2 million.
A 27% decline in volumes hurt FMC’s revenues in the reported quarter. Prices also fell 4% while currency was a headwind of 1%. Sales were impacted by inventory management actions by customers across all regions.
FMC Corporation Price, Consensus and EPS Surprise
FMC Corporation price-consensus-eps-surprise-chart | FMC Corporation Quote
Regional Sales Performance
In North America, sales tumbled 48% year over year to $259 million in the quarter on reduced volumes. It was below the consensus estimate of $318.1 million.
Latin American sales saw a 20% year-over-year decline to $188 million in the reported quarter, primarily due to reduced volumes and prices. It beat the consensus estimate of $174 million.
In Asia, revenues declined 29% compared to the previous year to $164 million, hurt by lower volumes in China due to poor weather conditions as well as reduced prices. It was below the consensus estimate of $219 million.
EMEA experienced a 20% year-over-year sales drop to $307 million in the reported quarter, driven by lower volumes partly mitigated by price increase by low-single digits. It missed the consensus estimate of $328 million.
Financials
The company had cash and cash equivalents of $417.8 million at the end of the quarter, up roughly 38% sequentially. Long-term debt was $3,024.6 million, flat sequentially.
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. Adjusted EBITDA is expected in the range of $900 million to $1.05 billion, flat at the midpoint compared to the prior year. Adjusted earnings are forecast between $3.23 to $4.41 per share, up 1% year-over-year at the midpoint. Full-year free cash flow is anticipated to be $400-$600 million.
FMC also forecasts second-quarter revenues to be between $1 billion to $1.15 billion, reflecting a 6% increase at the midpoint compared to the second quarter of 2023. Adjusted EBITDA is forecast in the band of $170-$210 million, essentially flat versus the prior-year period’s levels. Adjusted earnings are expected in the range of 43-72 cents in the second quarter, calling for a 15% rise at the midpoint compared with second-quarter 2023 levels.
Price Performance
FMC’s shares have lost 45.5% in the past year against a 3.6% decline of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
FMC currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks worth a look in the basic materials space include Gold Fields Limited (GFI - Free Report) , sporting a Zacks Rank #1 (Strong Buy), and Valvoline Inc. (VVV - Free Report) and American Vanguard Corporation (AVD - 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 GFI’s first-quarter earnings is pegged at 22 cents per share. The consensus estimate for GFI’s first-quarter earnings has been stable in the past 60 days.
Valvoline is slated to report fiscal second quarter results on May 8. The consensus estimate for VVV’s second-quarter earnings is pegged at 36 cents per share. The company’s shares have rallied around 27% in the past year.
American Vanguard is expected to report first-quarter results on May 14. The consensus estimate for AVD’ first-quarter earnings is pegged at 8 cents per share, indicating a year-over-year rise of 14.3%.