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Why Is FMC Corp (FMC) Up 3.6% Since the Last Earnings Report?
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It has been about a month since the last earnings report for FMC Corporation (FMC - Free Report) . Shares have added about 3.6% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to the stock's next earnings release, or is it due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
FMC Corp’s Q4 Earnings, Revenues Trail Estimates
FMC Corp. swung to a profit (on a reported basis) of $15.9 million or $0.12 per share in fourth-quarter 2016 from a loss of $204.1 million or $1.53 per share a year ago.
Barring one-time items including restructuring charges, earnings came in at $0.88 per share in the quarter, missing the Zacks Consensus Estimate of $0.89.
The company’s revenues fell roughly 4% year over year to $865.6 million in the reported quarter. Sales also missed the Zacks Consensus Estimate of $926 million.
For full-year 2016, profit fell roughly 57% year over year to $209.1 million or $1.56 per share.
Sales for the year were essentially flat year over year at $3,282.4 million.
Segment Review
Revenues from the Agricultural Solutions division fell around 6% year over year to $618 million in the reported quarter owing to reduced sales across Latin America and Europe. Segment profits were $127 million, up 25% year over year, driven by pricing strength.
Health and Nutrition segment’s sales rose 3% year over year to $177 million in the quarter. Segment profit climbed 17% year over year to $54 million, gaining from lower manufacturing costs.
Revenues from the Lithium unit edged up 1% to $71 million. Segment earnings zoomed 91% year over year to $21 million, aided by higher prices.
Balance Sheet
FMC Corp. ended 2016 with cash and cash equivalents of $64.2 million, down around 18% year over year. Long-term debt was $1,798.8 million, down around 12% year over year.
Outlook
FMC Corp. sees adjusted earnings in the band of $3.20 to $3.60 per share for 2017, a year over year increase of 20% at the mid-point of the guidance range.
The company expects revenues in the range of $2.2-$2.4 billion for its Agricultural Solutions unit for 2017. Segment earnings for the year are expected to be in the band of $410 million to $450 million. Earnings for first-quarter 2017 have been projected in the range of $60-$70 million.
For Health and Nutrition, the company expects revenues of between $750 million and $790 million for 2017. Segment earnings are expected to be $190-$200 million. For the first quarter, segment earnings are expected to be in the band of $45-$50 million.
FMC Corp. sees revenues in the range of $315-$355 million for the Lithium unit for 2017. Segment earnings are forecast to be in the band of $90-$110 million for the full year. For the first quarter, earnings are expected to be in the range of $18-$22 million.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed a downward trend in fresh estimates. There have been four revisions lower for the current quarter. In the past month, the consensus estimate has shifted 19.71% downward due to these changes.
At this time, FMC Corp's stock has an average score of 'C' on both growth and momentum front. Following the exact same course, the stock was allocated also a grade of 'C' on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'C'. If you aren't focused on one strategy, this score is the one you should be interested in.
Based on our scores, the stock is equally suitable for value, growth, and momentum investors.
Outlook
Estimates have been broadly trending downward for the stock. The magnitude of this revision also indicates a downward shift. Interestingly, the stock has a Zacks Rank #3 (Hold). We are looking for an inline return from the stock in the next few months.
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Why Is FMC Corp (FMC) Up 3.6% Since the Last Earnings Report?
It has been about a month since the last earnings report for FMC Corporation (FMC - Free Report) . Shares have added about 3.6% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to the stock's next earnings release, or is it due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
FMC Corp’s Q4 Earnings, Revenues Trail Estimates
FMC Corp. swung to a profit (on a reported basis) of $15.9 million or $0.12 per share in fourth-quarter 2016 from a loss of $204.1 million or $1.53 per share a year ago.
Barring one-time items including restructuring charges, earnings came in at $0.88 per share in the quarter, missing the Zacks Consensus Estimate of $0.89.
The company’s revenues fell roughly 4% year over year to $865.6 million in the reported quarter. Sales also missed the Zacks Consensus Estimate of $926 million.
For full-year 2016, profit fell roughly 57% year over year to $209.1 million or $1.56 per share.
Sales for the year were essentially flat year over year at $3,282.4 million.
Segment Review
Revenues from the Agricultural Solutions division fell around 6% year over year to $618 million in the reported quarter owing to reduced sales across Latin America and Europe. Segment profits were $127 million, up 25% year over year, driven by pricing strength.
Health and Nutrition segment’s sales rose 3% year over year to $177 million in the quarter. Segment profit climbed 17% year over year to $54 million, gaining from lower manufacturing costs.
Revenues from the Lithium unit edged up 1% to $71 million. Segment earnings zoomed 91% year over year to $21 million, aided by higher prices.
Balance Sheet
FMC Corp. ended 2016 with cash and cash equivalents of $64.2 million, down around 18% year over year. Long-term debt was $1,798.8 million, down around 12% year over year.
Outlook
FMC Corp. sees adjusted earnings in the band of $3.20 to $3.60 per share for 2017, a year over year increase of 20% at the mid-point of the guidance range.
The company expects revenues in the range of $2.2-$2.4 billion for its Agricultural Solutions unit for 2017. Segment earnings for the year are expected to be in the band of $410 million to $450 million. Earnings for first-quarter 2017 have been projected in the range of $60-$70 million.
For Health and Nutrition, the company expects revenues of between $750 million and $790 million for 2017. Segment earnings are expected to be $190-$200 million. For the first quarter, segment earnings are expected to be in the band of $45-$50 million.
FMC Corp. sees revenues in the range of $315-$355 million for the Lithium unit for 2017. Segment earnings are forecast to be in the band of $90-$110 million for the full year. For the first quarter, earnings are expected to be in the range of $18-$22 million.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed a downward trend in fresh estimates. There have been four revisions lower for the current quarter. In the past month, the consensus estimate has shifted 19.71% downward due to these changes.
FMC Corporation Price and Consensus
FMC Corporation Price and Consensus | FMC Corporation Quote
VGM Scores
At this time, FMC Corp's stock has an average score of 'C' on both growth and momentum front. Following the exact same course, the stock was allocated also a grade of 'C' on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'C'. If you aren't focused on one strategy, this score is the one you should be interested in.
Based on our scores, the stock is equally suitable for value, growth, and momentum investors.
Outlook
Estimates have been broadly trending downward for the stock. The magnitude of this revision also indicates a downward shift. Interestingly, the stock has a Zacks Rank #3 (Hold). We are looking for an inline return from the stock in the next few months.