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Why FMC (FMC) International Revenue Trends Deserve Your Attention

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Have you evaluated the performance of FMC's (FMC - Free Report) international operations during the quarter that concluded in March 2025? Considering the extensive worldwide presence of this chemical producer, analyzing the patterns in international revenues is crucial for understanding its financial resilience and potential for growth.

In today's increasingly interconnected global economy, a company's ability to tap into international markets can be a pivotal factor in shaping its overall financial health and growth trajectory. For investors, understanding a company's reliance on overseas markets has become increasingly crucial, as it offers insights into the company's sustainability of earnings, ability to tap into diverse economic cycles and overall growth potential.

Being present in foreign markets serves as protection against local economic declines and helps benefit from more rapidly expanding economies. Yet, such expansion also introduces challenges related to currency fluctuations, geopolitical uncertainties and varied market behaviors.

Our review of FMC's last quarterly performance uncovered some notable trends in the revenue contributions from its international markets, which are commonly analyzed and tracked by Wall Street experts.

For the quarter, the company's total revenue amounted to $791.4 million, experiencing a decline of 13.8% year over year. Next, we'll explore the breakdown of FMC's international revenue to understand the importance of its overseas business operations.

A Dive into FMC's International Revenue Trends

Latin America accounted for 26.13% of the company's total revenue during the quarter, translating to $206.8 million. Revenues from this region represented a surprise of +49.93%, with Wall Street analysts collectively expecting $137.93 million. When compared to the preceding quarter and the same quarter in the previous year, Latin America contributed $390.2 million (31.87%) and $188 million (20.48%) to the total revenue, respectively.

Of the total revenue, $272.8 million came from Europe/Middle East/Africa during the last fiscal quarter, accounting for 34.47%. This represented a surprise of -2.05% as analysts had expected the region to contribute $278.52 million to the total revenue. In comparison, the region contributed $187.5 million, or 15.31%, and $306.8 million, or 33.42%, to total revenue in the previous and year-ago quarters, respectively.

During the quarter, Asia contributed $125.4 million in revenue, making up 15.85% of the total revenue. When compared to the consensus estimate of $144.78 million, this meant a surprise of -13.39%. Looking back, Asia contributed $306.6 million, or 25.04%, in the previous quarter, and $164.1 million, or 17.88%, in the same quarter of the previous year.

Projected Revenues in Foreign Markets

Wall Street analysts expect FMC to report $964.75 million in total revenue for the current fiscal quarter, indicating a decline of 7.1% from the year-ago quarter. Latin America, Europe/Middle East/Africa and Asia are expected to contribute 29.8% ($287 million), 22.6% ($217.64 million) and 18.2% ($175.27 million) to the total revenue, respectively.

For the entire year, the company's total revenue is forecasted to be $4.16 billion, which is a reduction of 2.1% from the previous year. The revenue contributions from different regions are expected as follows: Latin America will contribute 34.2% ($1.42 billion), Europe/Middle East/Africa 20.4% ($848.47 million) and Asia 18.6% ($774.32 million) to the total revenue.

In Conclusion

Relying on international markets for revenues, FMC faces both prospects and perils. Thus, tracking the company's international revenue trends is essential for accurately projecting its future trajectory.

In a world where international interdependencies and geopolitical conflicts are ever-increasing, Wall Street analysts closely monitor these trends for companies having international presence to adjust their earnings forecasts. Of course, there are several other factors, including a company's standing within its home borders, that influence analysts' earnings forecasts.

Emphasizing a company's shifting earnings prospects is a key aspect of our approach at Zacks, especially since research has proven its substantial influence on a stock's price in the short run. This correlation is positively aligned, meaning that improved earnings projections tend to boost the stock's price.

The Zacks Rank, our proprietary stock rating mechanism, demonstrates a notable performance history confirmed through external audits. It effectively utilizes the power of earnings estimate revisions to act as a predictor of a stock's price performance in the near term.

FMC, bearing a Zacks Rank #3 (Hold), is expected to mirror the broader market's movements in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

A Review of FMC's Recent Stock Market Performance

Over the past month, the stock has seen an increase of 1.7% in its value, whereas the Zacks S&P 500 composite has posted an increase of 9.1%. The Zacks Consumer Staples sector, FMC's industry group, has descended 0.4% over the identical span. In the past three months, there's been an increase of 4.4% in the company's stock price, against a fall of 3.1% in the S&P 500 index. The broader sector has increased by 2.9% during this interval.

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