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FMC Corp's (FMC) Earnings and Revenues Top Estimates in Q4

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FMC Corporation (FMC - Free Report) recorded earnings (as reported) of $2.17 per share in fourth-quarter 2022, up from $1.50 reported in the year-ago quarter.

Barring one-time items, adjusted earnings per share were $2.37, which topped the Zacks Consensus Estimate of $2.32.

Revenues were $1,622 million in the quarter, up around 15% from the year-ago quarter’s levels. The top line surpassed the Zacks Consensus Estimate of $1,503.8 million.

Revenues were driven by a 9% rise in volumes and an 8% contribution from price. The company benefited from strong performance across North America, Latin America and Europe, Middle East and Africa (EMEA) in the reported quarter. Strong pricing actions also more than offset cost inflation and currency headwinds.

 

FMC Corporation Price, Consensus and EPS Surprise

 

FMC Corporation Price, Consensus and EPS Surprise

FMC Corporation price-consensus-eps-surprise-chart | FMC Corporation Quote

 

Regional Sales Performance

Sales climbed 35% year over year in North America in the quarter on strong volume and pricing in the U.S. business.

Sales in Latin America rose 13% year over year in the reported quarter on strong pricing and continued market expansion.
 
Revenues were flat year over year in Asia in the fourth quarter. In Australia, overwatch herbicide continued to gain share on cereals.

In EMEA, sales rose 7% year over year in the reported quarter on the back of strong pricing, expanded market access and broad-based demand, particularly in cereal herbicides.

FY22 Results

Earnings for full-year 2022 were $5.81 per share compared with $5.73 per share a year ago. Net sales went up around 15% year over year to $5,802.3 billion.

Financials

The company had cash and cash equivalents of $572 million at the end of 2022, up roughly 11% year over year. Long-term debt was $2,733.2 million, essentially flat year over year.

Guidance

For 2023, FMC sees revenues to the range of $6.08-$6.22 billion, indicating a rise of 6% at the midpoint from 2022 levels. Sales are expected to be driven by higher volumes on new launches and market access and strong prices in all regions. It envisions its pricing actions to be supported by a favorable market environment for 2023. FMC also expects continued healthy demand for its synthetic and biological product portfolios.

The company also expects adjusted EBITDA in the band of $1.48-$1.56 billion for 2023, indicating an 8% rise at the midpoint from 2022 levels.

FMC also projects adjusted earnings per share for 2023 in the range of $7.20-$8.00, suggesting an increase of 3% at the midpoint from the 2022 level.

Free cash flow for 2023 is projected to be $530-$720 million.

The company also sees first-quarter 2023 revenues in the range of $1.41-$1.45 billion, reflecting a 6% rise at the midpoint compared with the prior-year quarter’s levels. Adjusted earnings are forecast in the range of $1.63-$1.83 per share, representing a decline of 8% at the midpoint from the prior-year quarter’s levels. It also expects adjusted EBITDA in the range of $345-$365 million for the quarter, flat at the midpoint from the prior-year quarter’s levels.

Price Performance

FMC’s shares are up 7.5% in the past year compared with a 3.6% rise of the industry.

 

Zacks Investment Research
Image Source: Zacks Investment Research

 

Zacks Rank & Other Key Picks

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

Better-ranked stocks worth considering in the basic materials space include Steel Dynamics, Inc. (STLD - Free Report) , Commercial Metals Company (CMC - Free Report) and Agnico Eagle Mines Limited (AEM - Free Report) .

Steel Dynamics currently sports a Zacks Rank #1 (Strong Buy). The Zacks Consensus Estimate for STLD's current-year earnings has been revised 25.2% upward in the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.

Steel Dynamics’ earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 11.3%, on average. STLD has rallied around 97% in a year.

Commercial Metals currently carries a Zacks Rank #1. The consensus estimate for CMC's current-year earnings has been revised 10% upward in the past 60 days.

Commercial Metals’ earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 16.7%, on average. CMC has gained around 58% in a year.

Agnico Eagle currently carries a Zacks Rank #1. The Zacks Consensus Estimate for AEM’s current-year earnings has been revised 0.4% upward in the past 60 days.

Agnico Eagle beat Zacks Consensus Estimate in three of the last four quarters. It delivered a trailing four-quarter earnings surprise of 26.4% on average. AEM’s shares have gained roughly 7% in the past year.


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