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Why Is FMC (FMC) Down 15.1% Since Last Earnings Report?
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A month has gone by since the last earnings report for FMC (FMC - Free Report) . Shares have lost about 15.1% in that time frame, underperforming 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 drivers.
FMC's Earnings Surpass Estimates, Revenues Lag in Q1
FMC reported a loss of 2 cents per share in first-quarter 2024. This compares to earnings of $1.55 in the year-ago quarter.
Barring one-time items, adjusted earnings per share were 36 cents, beating the Zacks Consensus Estimate of 35 cents.
Revenues were $918 million in the quarter, down around 32% from the year-ago quarter’s levels. The top line fell short of the Zacks Consensus Estimate of $1.03 billion.
A 27% decline in volumes hurt FMC’s revenues in the reported quarter. Prices also fell 4% while currency was a headwind of 1%. Sales were impacted by inventory management actions by customers across all regions.
Regional Sales Performance
In North America, sales tumbled 48% year over year to $259 million in the quarter on reduced volumes. It was below the consensus estimate of $318.1 million.
Latin American sales saw a 20% year-over-year decline to $188 million in the reported quarter, primarily due to reduced volumes and prices. It beat the consensus estimate of $174 million.
In Asia, revenues declined 29% compared to the previous year to $164 million, hurt by lower volumes in China due to poor weather conditions as well as reduced prices. It was below the consensus estimate of $219 million.
EMEA experienced a 20% year-over-year sales drop to $307 million in the reported quarter, driven by lower volumes partly mitigated by price increase by low-single digits. It missed the consensus estimate of $328 million.
Financials
The company had cash and cash equivalents of $417.8 million at the end of the quarter, up roughly 38% sequentially. Long-term debt was around $3.02 billion, flat sequentially.
Guidance
FMC forecasts full-year 2024 revenues between $4.50 billion and $4.70 billion, indicating a 2.5% increase at the midpoint compared to 2023. Adjusted EBITDA is expected in the range of $900 million to $1.05 billion, flat at the midpoint compared to the prior year. Adjusted earnings are forecast between $3.23 to $4.41 per share, up 1% year-over-year at the midpoint. Full-year free cash flow is anticipated to be $400-$600 million.
FMC also forecasts second-quarter revenues to be between $1 billion to $1.15 billion, reflecting a 6% increase at the midpoint compared to the second quarter of 2023. Adjusted EBITDA is forecast in the band of $170-$210 million, essentially flat versus the prior-year period’s levels. Adjusted earnings are expected in the range of 43-72 cents in the second quarter, calling for a 15% rise at the midpoint compared with second-quarter 2023 levels.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
The consensus estimate has shifted -14.59% due to these changes.
VGM Scores
At this time, FMC has a poor Growth Score of F, however its Momentum Score is doing a lot better with a B. Charting a somewhat similar path, 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 F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, FMC has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
FMC is part of the Zacks Chemical - Diversified industry. Over the past month, Air Products and Chemicals (APD - Free Report) , a stock from the same industry, has gained 8.7%. The company reported its results for the quarter ended March 2024 more than a month ago.
Air Products and Chemicals reported revenues of $2.93 billion in the last reported quarter, representing a year-over-year change of -8.4%. EPS of $2.85 for the same period compares with $2.74 a year ago.
For the current quarter, Air Products and Chemicals is expected to post earnings of $3.04 per share, indicating a change of +2% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.1% over the last 30 days.
Air Products and Chemicals has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of F.
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Why Is FMC (FMC) Down 15.1% Since Last Earnings Report?
A month has gone by since the last earnings report for FMC (FMC - Free Report) . Shares have lost about 15.1% in that time frame, underperforming 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 drivers.
FMC's Earnings Surpass Estimates, Revenues Lag in Q1
FMC reported a loss of 2 cents per share in first-quarter 2024. This compares to earnings of $1.55 in the year-ago quarter.
Barring one-time items, adjusted earnings per share were 36 cents, beating the Zacks Consensus Estimate of 35 cents.
Revenues were $918 million in the quarter, down around 32% from the year-ago quarter’s levels. The top line fell short of the Zacks Consensus Estimate of $1.03 billion.
A 27% decline in volumes hurt FMC’s revenues in the reported quarter. Prices also fell 4% while currency was a headwind of 1%. Sales were impacted by inventory management actions by customers across all regions.
Regional Sales Performance
In North America, sales tumbled 48% year over year to $259 million in the quarter on reduced volumes. It was below the consensus estimate of $318.1 million.
Latin American sales saw a 20% year-over-year decline to $188 million in the reported quarter, primarily due to reduced volumes and prices. It beat the consensus estimate of $174 million.
In Asia, revenues declined 29% compared to the previous year to $164 million, hurt by lower volumes in China due to poor weather conditions as well as reduced prices. It was below the consensus estimate of $219 million.
EMEA experienced a 20% year-over-year sales drop to $307 million in the reported quarter, driven by lower volumes partly mitigated by price increase by low-single digits. It missed the consensus estimate of $328 million.
Financials
The company had cash and cash equivalents of $417.8 million at the end of the quarter, up roughly 38% sequentially. Long-term debt was around $3.02 billion, flat sequentially.
Guidance
FMC forecasts full-year 2024 revenues between $4.50 billion and $4.70 billion, indicating a 2.5% increase at the midpoint compared to 2023. Adjusted EBITDA is expected in the range of $900 million to $1.05 billion, flat at the midpoint compared to the prior year. Adjusted earnings are forecast between $3.23 to $4.41 per share, up 1% year-over-year at the midpoint. Full-year free cash flow is anticipated to be $400-$600 million.
FMC also forecasts second-quarter revenues to be between $1 billion to $1.15 billion, reflecting a 6% increase at the midpoint compared to the second quarter of 2023. Adjusted EBITDA is forecast in the band of $170-$210 million, essentially flat versus the prior-year period’s levels. Adjusted earnings are expected in the range of 43-72 cents in the second quarter, calling for a 15% rise at the midpoint compared with second-quarter 2023 levels.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
The consensus estimate has shifted -14.59% due to these changes.
VGM Scores
At this time, FMC has a poor Growth Score of F, however its Momentum Score is doing a lot better with a B. Charting a somewhat similar path, 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 F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, FMC has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
FMC is part of the Zacks Chemical - Diversified industry. Over the past month, Air Products and Chemicals (APD - Free Report) , a stock from the same industry, has gained 8.7%. The company reported its results for the quarter ended March 2024 more than a month ago.
Air Products and Chemicals reported revenues of $2.93 billion in the last reported quarter, representing a year-over-year change of -8.4%. EPS of $2.85 for the same period compares with $2.74 a year ago.
For the current quarter, Air Products and Chemicals is expected to post earnings of $3.04 per share, indicating a change of +2% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.1% over the last 30 days.
Air Products and Chemicals has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of F.