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FMC Corp (FMC) Q1 Earnings Preview: Is Another Beat Coming?
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FMC Corporation (FMC - Free Report) will release its first-quarter 2018 results after the bell on May 2.
The chemical maker’s profits skyrocketed in fourth-quarter 2017, buoyed by a hefty gain of $727 million from the sale of its Health and Nutrition division. Adjusted earnings of $1.10 per share for the quarter exceeded the Zacks Consensus Estimate of $1.03.
The company’s revenues soared roughly 42% year over year to $980 million in the fourth quarter, boosted by the acquisition of a major portion of DuPont's Crop Protection business. Sales, however, trailed the Zacks Consensus Estimate of $1,002 million.
FMC Corp.’s shares have gained 10.5% over a year, modestly outperforming its industry’s gain of roughly 9% over the same time frame.
FMC Corp. beat the Zacks Consensus Estimate in three of the trailing four quarters while missing once, delivering an average negative surprise of 0.9%.
Let’s see how things are shaping up for this announcement.
Earnings Whispers
Our proven model shows that FMC Corp. is likely to beat on earnings estimates this quarter. This is because it has the right combination of two key ingredients, a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold).
Zacks ESP: Earnings ESP for FMC Corp. is currently pegged at +0.31%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: FMC Corp. currently carries a Zacks Rank #2. The combination of a favorable Zacks Rank and a positive ESP makes us reasonably confident of an earnings beat.
Conversely, Sell-rated stocks (Zacks Rank #4 or 5) should never be considered going into an earnings announcement, especially when the company is seeing negative estimate revisions.
Factors at Play
FMC Corp., last month, provided an update on its expected performance for the first quarter and full-year 2018. The company stated that it expects first-quarter adjusted earnings to exceed the top end of its prior guidance of $1.45-$1.59 per share. For 2018, it anticipates adjusted earnings to exceed the top end of its earlier guidance of $5.20-$5.60 per share.
The company said that it is likely to witness a solid first-quarter performance on the back of strong segment earnings. In its Agricultural Solutions segment, earnings are expected to be driven by strong customer demand and lower achieved operating costs. The company also expects its Lithium segment to perform well in the first quarter on the back of strengthening market conditions.
For the first quarter, the Zacks Consensus Estimate for earnings currently stands at $1.63, indicating a staggering 279% growth on a year-over-year basis.
Moreover, the Zacks Consensus Estimate for revenues for FMC Corp. for the first quarter stands at $1,141 million, reflecting an estimated year over year growth of 91.4%.
Net sales for the Agricultural Solutions segment for the first quarter is estimated rise 94% year over year as the Zacks Consensus Estimate for the March quarter is pegged at $1,030 million.
Moreover, the Zacks Consensus Estimate for net sales for the Lithium unit is projected to be $102 million for the first quarter, reflecting an estimated 55% rise on a year over year basis.
The acquisition of a major portion of DuPont's Crop Protection business has provided a significant growth platform for FMC’s Agricultural Solutions unit. The buyout significantly increases the company’s presence in Asia and Europe. Contributions of the acquisition are expected to drive revenues in this unit in the to-be-reported quarter.
Strong momentum in the Lithium unit is also expected to continue in the March quarter. The company is preparing for the separation of its lithium business. FMC Corp., in March, appointed executive leaders for its earlier announced new, publicly traded lithium materials company, which will be created by separating the company’s lithium business through an IPO in the second half of 2018. We expect the company to provide an update on its progress on the separation.
Here are some companies in the basic materials space you may want to consider as our model shows they too have the right combination of elements to post an earnings beat this quarter:
Univar Inc. has an Earnings ESP of +2.63% and sports a Zacks Rank #1.
Huntsman Corporation (HUN - Free Report) has an Earnings ESP of +4.35% and carries a Zacks Rank #2.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
Image: Bigstock
FMC Corp (FMC) Q1 Earnings Preview: Is Another Beat Coming?
FMC Corporation (FMC - Free Report) will release its first-quarter 2018 results after the bell on May 2.
The chemical maker’s profits skyrocketed in fourth-quarter 2017, buoyed by a hefty gain of $727 million from the sale of its Health and Nutrition division. Adjusted earnings of $1.10 per share for the quarter exceeded the Zacks Consensus Estimate of $1.03.
The company’s revenues soared roughly 42% year over year to $980 million in the fourth quarter, boosted by the acquisition of a major portion of DuPont's Crop Protection business. Sales, however, trailed the Zacks Consensus Estimate of $1,002 million.
FMC Corp.’s shares have gained 10.5% over a year, modestly outperforming its industry’s gain of roughly 9% over the same time frame.
FMC Corp. beat the Zacks Consensus Estimate in three of the trailing four quarters while missing once, delivering an average negative surprise of 0.9%.
Let’s see how things are shaping up for this announcement.
Earnings Whispers
Our proven model shows that FMC Corp. is likely to beat on earnings estimates this quarter. This is because it has the right combination of two key ingredients, a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold).
Zacks ESP: Earnings ESP for FMC Corp. is currently pegged at +0.31%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: FMC Corp. currently carries a Zacks Rank #2. The combination of a favorable Zacks Rank and a positive ESP makes us reasonably confident of an earnings beat.
Conversely, Sell-rated stocks (Zacks Rank #4 or 5) should never be considered going into an earnings announcement, especially when the company is seeing negative estimate revisions.
Factors at Play
FMC Corp., last month, provided an update on its expected performance for the first quarter and full-year 2018. The company stated that it expects first-quarter adjusted earnings to exceed the top end of its prior guidance of $1.45-$1.59 per share. For 2018, it anticipates adjusted earnings to exceed the top end of its earlier guidance of $5.20-$5.60 per share.
The company said that it is likely to witness a solid first-quarter performance on the back of strong segment earnings. In its Agricultural Solutions segment, earnings are expected to be driven by strong customer demand and lower achieved operating costs. The company also expects its Lithium segment to perform well in the first quarter on the back of strengthening market conditions.
For the first quarter, the Zacks Consensus Estimate for earnings currently stands at $1.63, indicating a staggering 279% growth on a year-over-year basis.
Moreover, the Zacks Consensus Estimate for revenues for FMC Corp. for the first quarter stands at $1,141 million, reflecting an estimated year over year growth of 91.4%.
Net sales for the Agricultural Solutions segment for the first quarter is estimated rise 94% year over year as the Zacks Consensus Estimate for the March quarter is pegged at $1,030 million.
Moreover, the Zacks Consensus Estimate for net sales for the Lithium unit is projected to be $102 million for the first quarter, reflecting an estimated 55% rise on a year over year basis.
The acquisition of a major portion of DuPont's Crop Protection business has provided a significant growth platform for FMC’s Agricultural Solutions unit. The buyout significantly increases the company’s presence in Asia and Europe. Contributions of the acquisition are expected to drive revenues in this unit in the to-be-reported quarter.
Strong momentum in the Lithium unit is also expected to continue in the March quarter. The company is preparing for the separation of its lithium business. FMC Corp., in March, appointed executive leaders for its earlier announced new, publicly traded lithium materials company, which will be created by separating the company’s lithium business through an IPO in the second half of 2018. We expect the company to provide an update on its progress on the separation.
FMC Corporation Price and EPS Surprise
FMC Corporation price-eps-surprise | FMC Corporation Quote
Stocks Poised to Beat Estimates
Here are some companies in the basic materials space you may want to consider as our model shows they too have the right combination of elements to post an earnings beat this quarter:
Koppers Holdings Inc. (KOP - Free Report) has an Earnings ESP of +5.00% and flaunts a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Univar Inc. has an Earnings ESP of +2.63% and sports a Zacks Rank #1.
Huntsman Corporation (HUN - Free Report) has an Earnings ESP of +4.35% and carries a Zacks Rank #2.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>