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FMC's Earnings and Revenues Surpass Estimates in Q2
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FMC Corporation (FMC - Free Report) reported earnings of $2.35 per share in second-quarter 2024, up from earnings of 24 cents in the year-ago quarter.
Barring one-time items, adjusted earnings per share were 63 cents, beating the Zacks Consensus Estimate of 50 cents.
Revenues were $1,038.4 million in the quarter, up around 2% from the year-ago quarter’s levels. The top line surpassed the Zacks Consensus Estimate of $995.3 million.
The top line in the reported quarter was driven by a 14% year-over-year rise in volumes. This was partly offset by a 10% decline in prices and a 2% currency headwind. FMC saw improved demand during the quarter, leading to an increase in sales volumes, especially in the United States and Brazil.
In North America, sales rose 24% year over year to $339 million in the quarter on higher volumes. It was above the consensus estimate of $282.2 million.
Latin American sales saw a 14% year-over-year increase to $307 million in the reported quarter, primarily due to higher volumes, especially in Brazil. It beat the consensus estimate of $272.7 million.
In Asia, revenues declined 28% compared to the previous year to $191 million, hurt by lower volumes mainly in India, due to the ongoing channel destocking and lower prices. It was below the consensus estimate of $228.9 million.
EMEA experienced a 3% year-over-year sales decline to $201 million in the reported quarter. It missed the consensus estimate of $214.9 million.
Financials
The company had cash and cash equivalents of $471.5 million, up roughly 13% sequentially. Long-term debt was $3,025.8 million, flat sequentially.
Guidance
FMC has updated its revenue outlook for full-year 2024 and now sees revenues between $4.30 billion to $4.50 billion, indicating a 2% decline at the midpoint compared to 2023. Adjusted EBITDA is now expected in the range of $880 million and $940 million, suggesting a 7% decline at the midpoint compared to the prior year. Adjusted earnings are now forecast between $3.02-$3.64 per share, reflecting a 12% year-over-year decline at the midpoint. Full-year free cash flow is anticipated to be $400-$500 million.
FMC also forecasts third-quarter revenues to be between $1 billion to $1.09 billion, reflecting a 6% increase at the midpoint compared to the third quarter of 2023. Adjusted EBITDA is forecast in the band of $165-$195 million, indicating a 3% rise versus the prior-year period’s levels. Adjusted earnings are expected in the range of 39-67 cents in the third quarter, calling for a 20% rise at the midpoint compared with third-quarter 2023 levels.
Price Performance
FMC’s shares have lost 37.1% in the past year against a 9.1% decline of the industry.
Kronos is expected to report second-quarter results on Aug 7. The Zacks Consensus Estimate for KRO’s second-quarter earnings is pegged at 21 cents. The company’s shares have rallied roughly 29% in the past year.
Ashland is slated to report fiscal third-quarter results on Aug 6. The Zacks Consensus Estimate for ASH’s third-quarter earnings is pegged at $1.47. The company’s shares have gained roughly 7% in the past year.
Hecla is slated to report second-quarter results on Aug 6. The Zacks Consensus Estimate for Hecla's second-quarter earnings is pegged at a penny per share. The stock has gained nearly 9% in the past year.
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FMC's Earnings and Revenues Surpass Estimates in Q2
FMC Corporation (FMC - Free Report) reported earnings of $2.35 per share in second-quarter 2024, up from earnings of 24 cents in the year-ago quarter.
Barring one-time items, adjusted earnings per share were 63 cents, beating the Zacks Consensus Estimate of 50 cents.
Revenues were $1,038.4 million in the quarter, up around 2% from the year-ago quarter’s levels. The top line surpassed the Zacks Consensus Estimate of $995.3 million.
The top line in the reported quarter was driven by a 14% year-over-year rise in volumes. This was partly offset by a 10% decline in prices and a 2% currency headwind. FMC saw improved demand during the quarter, leading to an increase in sales volumes, especially in the United States and Brazil.
FMC Corporation Price, Consensus and EPS Surprise
FMC Corporation price-consensus-eps-surprise-chart | FMC Corporation Quote
Regional Sales Performance
In North America, sales rose 24% year over year to $339 million in the quarter on higher volumes. It was above the consensus estimate of $282.2 million.
Latin American sales saw a 14% year-over-year increase to $307 million in the reported quarter, primarily due to higher volumes, especially in Brazil. It beat the consensus estimate of $272.7 million.
In Asia, revenues declined 28% compared to the previous year to $191 million, hurt by lower volumes mainly in India, due to the ongoing channel destocking and lower prices. It was below the consensus estimate of $228.9 million.
EMEA experienced a 3% year-over-year sales decline to $201 million in the reported quarter. It missed the consensus estimate of $214.9 million.
Financials
The company had cash and cash equivalents of $471.5 million, up roughly 13% sequentially. Long-term debt was $3,025.8 million, flat sequentially.
Guidance
FMC has updated its revenue outlook for full-year 2024 and now sees revenues between $4.30 billion to $4.50 billion, indicating a 2% decline at the midpoint compared to 2023. Adjusted EBITDA is now expected in the range of $880 million and $940 million, suggesting a 7% decline at the midpoint compared to the prior year. Adjusted earnings are now forecast between $3.02-$3.64 per share, reflecting a 12% year-over-year decline at the midpoint. Full-year free cash flow is anticipated to be $400-$500 million.
FMC also forecasts third-quarter revenues to be between $1 billion to $1.09 billion, reflecting a 6% increase at the midpoint compared to the third quarter of 2023. Adjusted EBITDA is forecast in the band of $165-$195 million, indicating a 3% rise versus the prior-year period’s levels. Adjusted earnings are expected in the range of 39-67 cents in the third quarter, calling for a 20% rise at the midpoint compared with third-quarter 2023 levels.
Price Performance
FMC’s shares have lost 37.1% in the past year against a 9.1% decline of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
FMC currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the Basic Materials space are Kronos Worldwide, Inc. (KRO - Free Report) , Ashland Inc. (ASH - Free Report) and Hecla Mining Company (HL - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Kronos is expected to report second-quarter results on Aug 7. The Zacks Consensus Estimate for KRO’s second-quarter earnings is pegged at 21 cents. The company’s shares have rallied roughly 29% in the past year.
Ashland is slated to report fiscal third-quarter results on Aug 6. The Zacks Consensus Estimate for ASH’s third-quarter earnings is pegged at $1.47. The company’s shares have gained roughly 7% in the past year.
Hecla is slated to report second-quarter results on Aug 6. The Zacks Consensus Estimate for Hecla's second-quarter earnings is pegged at a penny per share. The stock has gained nearly 9% in the past year.