Back to top

Image: Bigstock

Why Is FMC (FMC) Down 0.5% Since Last Earnings Report?

Read MoreHide Full Article

It has been about a month since the last earnings report for FMC (FMC - Free Report) . Shares have lost about 0.5% in that time frame, outperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is FMC due for a breakout? 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 catalysts.

FMC Beats Earnings & Sales Estimates in Q1, Raises 2019 View

FMC Corp logged profits (as reported) of $215.7 million or $1.62 per share in first-quarter 2019, down from $267.2 million or $1.96 per share it earned a year ago.  

Barring one-time items, adjusted earnings per share (EPS) came in at $1.72 in the quarter, up roughly 9% year over year. The figure exceeded the Zacks Consensus Estimate of $1.62.

Revenues climbed roughly 7.6% year over year to $1,192.1 million. It also surpassed the Zacks Consensus Estimate of $1,189.7 million. Revenue growth was supported by 9% contribution from volume along with 5% contribution from price, which was partly offset by a 6% adverse impact of foreign currencies.

Regional Sales Performance

The company achieved higher pricing in all regions during the reported quarter.

Sales in Latin America climbed 30% year over year and more than 40% excluding foreign exchange. This was mainly driven by Brazil, including strong sales growth for soybean, cotton and sugarcane applications.

Sales grew 7% year over year in North America supported by demand in pre-emergent herbicides for insecticides and soybeans.

In EMEA, sales expanded 3% year over year and 11% excluding foreign exchange. This was mainly driven by price increases, favorable weather along with demand for FMC’s insecticide portfolio.

Revenues grew 1% year over year in Asia and 8% excluding foreign exchange. This was mainly driven by growth in insecticides in China along with strong growth in Pakistan and Japan and sustained sales synergies in India.

Balance Sheet

As of Mar 31, 2019, FMC had cash and cash equivalents of $109.5 million. Long-term debt was $2,145 million at the end of the first quarter.

Guidance

For 2019, the company expects revenues to be between $4.5 billion and $4.6 billion, indicating a rise of 6% at the midpoint versus recast 2018 and $50 million higher than the prior guidance. Adjusted EPS is forecast in the range $5.62-$5.82, an increase of 9% at the midpoint compared with recast 2018 and 7 cents higher than the prior guidance.

For second-quarter 2019, revenues are projected in the band $1.185-$1.215 billion, indicating 4% growth at the midpoint compared with recast second-quarter 2018. Adjusted EPS is expected to be in the range $1.60-$1.70, indicating 10% growth at the midpoint compared with recast second-quarter 2018 figure.
 

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed an upward trend in fresh estimates.

VGM Scores

At this time, FMC has a poor Growth Score of F, however its Momentum Score is doing a lot better with an A. However, the stock was allocated 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 D. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, FMC has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


FMC Corporation (FMC) - free report >>

Published in