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FMC (FMC) Up 1.7% Since Last Earnings Report: Can It Continue?
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It has been about a month since the last earnings report for FMC (FMC - Free Report) . Shares have added about 1.7% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is FMC due for a pullback? 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's Earnings and Revenues Surpass Estimates in Q2
FMC Corp 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 roughly $1.04 billion 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.
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 roughly $3.03 billion, 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.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month.
The consensus estimate has shifted -28.66% due to these changes.
VGM Scores
Currently, FMC has an average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. 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 C. 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.
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FMC (FMC) Up 1.7% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for FMC (FMC - Free Report) . Shares have added about 1.7% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is FMC due for a pullback? 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's Earnings and Revenues Surpass Estimates in Q2
FMC Corp 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 roughly $1.04 billion 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.
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 roughly $3.03 billion, 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.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month.
The consensus estimate has shifted -28.66% due to these changes.
VGM Scores
Currently, FMC has an average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. 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 C. 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.