Back to top

FMC Completes the Final Distribution for Livent Separation

Read MoreHide Full Article

FMC Corporation (FMC - Free Report) stated that it has closed the earlier announced distribution of 123 million common shares of Livent Corporation.

The common stocks of Livent will be distributed as a pro rata dividend on shares of FMC common stock outstanding as of on the record date of Feb 25, 2019. Based on the FMC common stock outstanding shares as of Feb 25, each of FMC common stock shares will receive 0.935301 shares of Livent common stock in the distribution. 

Moreover, fractional shares of Livent will not be distributed to the stockholders of FMC. Per the company, fractional shares will be aggregated and sold in the open market on behalf of the applicable shareholders. The net proceeds will be distributed on pro rata basis in the form of cash payments to FMC stockholders, who will otherwise get the fractional Livent shares.

The company also stated that the distribution qualifies as a tax-free distribution to the FMC stockholders for U.S. federal income tax purposes. However, cash received in lieu of fractional shares are taxable.

FMC’s adjusted earnings per share (EPS) were $1.69 in the fourth quarter of 2018, up 54% year over year. The results were driven by strong performance of FMC’s Agricultural Solutions unit and lower-than-expected taxes. Also, the figure exceeded the Zacks Consensus Estimate of $1.65.

For first-quarter 2019, the company expects adjusted EPS in the range of $1.58-$1.68, up 3% at the midpoint compared with recast first-quarter 2018 earnings. FMC expects revenues of $1.18-$1.21 billion for the quarter, up 8% at the midpoint versus recast first-quarter 2018 revenues.

Adjusted EBITDA for the quarter is projected in the range of $320-$340 million, flat year over year at the midpoint compared with recast first-quarter 2018 adjusted EBITDA. The company expects headwinds from higher raw material costs and currency in the first half of 2019.

FMC Corporation Price and Consensus

FMC Corporation Price and Consensus | FMC Corporation Quote

Zacks Rank & Key Picks

FMC currently carries a Zacks Rank #3 (Hold).

A few better-ranked stocks in the basic materials space include Kirkland Lake Gold Ltd. (KL - Free Report) , Ingevity Corp. (NGVT - Free Report) and Materion Corp. (MTRN - Free Report) , all currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Kirkland has an expected earnings growth rate of 8.8% for 2019. The company’s shares have surged 123.2% in the past year.

Ingevity has an expected earnings growth rate of 17.9% for 2019. The company’s shares have surged 53.8% in a year’s time.

Materion has an expected earnings growth rate of 12.6% for 2019. Its shares have gained 15.5% in a year’s time.

Zacks' Top 10 Stocks for 2019

In addition to the stocks discussed above, wouldn't you like to know about our 10 finest buy-and-holds for the year?

From more than 4,000 companies covered by the Zacks Rank, these 10 were picked by a process that consistently beats the market. Even during 2018 while the market dropped -5.2%, our Top 10s were up well into double-digits. And during bullish 2012 – 2017, they soared far above the market's +126.3%, reaching +181.9%.

This year, the portfolio features a player that thrives on volatility, an AI comer, and a dynamic tech company that helps doctors deliver better patient outcomes at lower costs.

See Stocks Today >>