FMC's Earnings Surpass Estimates, Revenues Lag in Q1

Zacks Equity Research

May 7, 2024 at 7:51 a.m.·3 min read

FMC Corporation 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 $1,025.2 million.

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.

FMC Corporation Price, Consensus and EPS Surprise

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

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 $3,024.6 million, 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.

Price Performance

FMC’s shares have lost 45.5% in the past year against a 3.6% decline of the industry.

Image Source: Zacks Investment Research

Zacks Rank & Key Picks

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

Better-ranked stocks worth a look in the basic materials space include Gold Fields Limited GFI, sporting a Zacks Rank #1 (Strong Buy), and Valvoline Inc. VVV and American Vanguard Corporation AVD, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for GFI’s first-quarter earnings is pegged at 22 cents per share. The consensus estimate for GFI’s first-quarter earnings has been stable in the past 60 days.

Valvoline is slated to report fiscal second quarter results on May 8. The consensus estimate for VVV’s second-quarter earnings is pegged at 36 cents per share. The company’s shares have rallied around 27% in the past year.

American Vanguard is expected to report first-quarter results on May 14. The consensus estimate for AVD’ first-quarter earnings is pegged at 8 cents per share, indicating a year-over-year rise of 14.3%.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Gold Fields Limited (GFI) : Free Stock Analysis Report

FMC Corporation (FMC) : Free Stock Analysis Report

American Vanguard Corporation (AVD) : Free Stock Analysis Report

Valvoline (VVV) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

GOBankingRates
In 5 Years, These 2 Stocks Will Be More Valuable Than Apple
Warren Buffett, one of the world's richest men, has a vast portfolio that includes many of today's biggest companies. Through his experience, he has accumulated various assets and company ownership...
The Motley Fool
TFSA: 2 Canadian Stocks to Buy and Hold for Tax-Free Gains
Building a large, tax-free nest egg in your TFSA with growth stocks can give you more control over your tax bill in your retirement years. The post TFSA: 2 Canadian Stocks to Buy and Hold for Tax-Free Gains appeared first on The Motley Fool Canada.
The Motley Fool
Where Will Enbridge Stock Be in 3 Years?
Despite its recent sharp gains, Enbridge (TSX:ENB) stock has the potential to continue inching up in the years to come and reward investors with higher dividends. The post Where Will Enbridge Stock Be in 3 Years? appeared first on The Motley Fool Canada.
Insider Monkey
Forget Magnificent Seven: Hedge Funds are Pouring Money Into This Utility Stock to Cash In On AI Boom
We recently analyzed the top utilities stocks hedge funds are buying to profit from the AI-led boom in the industry. Since Vistra Corp. (NYSE:VST) was part of the list, the stock deserves a deeper look. But first, let’s see why everyone’s taking about AI catalysts for utilities stocks these days. The AI revolution that started with […]
Barrons.com
Fed Rate Cuts Are Coming. Get Ready for the Stock Market’s Next Phase.
While the Nasdaq Composite is at a record high, some experts believe that a shift is coming in the market.
GOBankingRates
I’m a Self-Made Millionaire: Here’s Why I’m Forgoing a Financial Advisor
Human investment advisors can cost a small fortune -- and not even deliver on returns. "Last year, I hired a financial advisor to manage most of my money so I could take a hands-off approach and focus...
The Motley Fool
Canada Is About to Spend $2 Billion on Homegrown AI: 2 Stocks to Reap the Benefits
Here's how Canada intends to invest $2.4 billion in artificial intelligence. Nvidia (NSADQ:NVDA) and IBM (NYSE:IBM) stock could benefit. The post Canada Is About to Spend $2 Billion on Homegrown AI: 2 Stocks to Reap the Benefits appeared first on The Motley Fool Canada.
Reuters
Canada finance minister says budget created conditions for cut in interest rates
Canada's Finance Minister Chrystia Freeland said on Tuesday that the federal budget presented to the Parliament last month had created conditions for interest rates to come down. The government has "been very mindful of acting in such a way that would create conditions that support the decline in inflation, or creating conditions that would make it possible for the (central) bank to bring interest rates down," she told reporters at a conference in Ottawa. She, however, said the Bank of Canada (BoC) is independent and it will be the bank's decision to cut interest rates on June 5 or not.
The Motley Fool
Time to Pounce: 1 Phenomenal TSX Stock That Hasn’t Been This Cheap in a While
TD Bank (TSX:TD) stock looks severely undervalued after a solid, but mostly ignored second quarter. The post Time to Pounce: 1 Phenomenal TSX Stock That Hasn’t Been This Cheap in a While appeared first on The Motley Fool Canada.
The Canadian Press
Scotiabank profits slip as auto loans and variable mortgages weigh
TORONTO — Rising strain in auto loans and mortgages led Scotiabank to set aside more money in the second quarter, leading to a drop in profits and analyst concern about its growth prospects.
The Motley Fool
4 Low-Risk Dividend Stocks for Retirees
These four low-risk dividend stocks are ideal for retirees, given their solid underlying businesses, impressive track records, and healthy growth prospects. The post 4 Low-Risk Dividend Stocks for Retirees appeared first on The Motley Fool Canada.
The Motley Fool
2 Bargain-Priced Stocks With Obvious Growth Potential
Two bargain-priced stocks with visible growth potential should break out and recover from a slump with the coming tailwind. The post 2 Bargain-Priced Stocks With Obvious Growth Potential appeared first on The Motley Fool Canada.
Barrons.com
Why You Don’t Need Need to Buy Nvidia Stock Right Now
Nvidia stock is on fire but you probably don’t need to buy it now. If you don’t own individual shares, watching Nvidia stock soar the way it has can be painful. Nvidia stock has earned every percentage point of those gains.
Washington Post
Home insurance was once a ‘must.’ Now more homeowners are going without.
Jamie Lafollette found out State Farm was dropping her policy from reading the news. After she saw a story about the insurer pulling out of Santa Cruz County, her longtime home, she called her agent to confirm that her plan would lapse - setting off a desperate search for a replacement policy that is ongoing.Subscribe to The Post Most newsletter for the most important and interesting stories from The Washington Post. “Our first quote came in at over $10,000 a year, and that was bare bones covera
Moneywise
'Let’s punish predatory short selling': RFK Jr. invests $24,000 in GameStop, promises Wall Street reforms
Meme stocks investors have won an unlikely ally.
The Motley Fool
3 Stocks Set for Dividend Increases This Year
Here are three TSX stocks that are set to increase their dividends later this year. The post 3 Stocks Set for Dividend Increases This Year appeared first on The Motley Fool Canada.
Financial Post
Posthaste: Canada could face two more decades of stagnant growth, report warns
Country could be looking at low growth and higher inflation for next 20 years
Yahoo Finance
Nvidia stock leaps to latest record — thanks to Elon Musk
The increase of AI investment has continued to boost optimism over Nvidia's growth as the chipmaker continues its record-setting stock rally.
Insider Monkey
This Biotech Stock is a “Strong Buy” According to Raymond James
We recently compiled a list of the 7 Best Mid-Cap Healthcare Stocks To Buy Now and in this article we will look at a particular biotech which recently got a “Strong Buy” rating from Raymond James analysts. Challenges in the Health Sector The healthcare industry is considered to be a fairly defensive sector due to […]
The Motley Fool
Here’s Why I Think Brookfield Renewable Stock Is 1 of the Best Deals on the TSX Today
Brookfield Renewable (TSX:BEP.UN) stock saw shares rise by about 35% since earnings, but even more is on the way. The post Here’s Why I Think Brookfield Renewable Stock Is 1 of the Best Deals on the TSX Today appeared first on The Motley Fool Canada.