Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

FMC Shares Climb on Revenue Guidance Beat

Published 05/07/2024, 04:42 AM
© Reuters.
FMC
-

PHILADELPHIA - FMC Corporation (NYSE:FMC) reported a first-quarter earnings per share (EPS) of $0.36, which was $0.03 higher than the analyst consensus of $0.33. However, the company's revenue for the quarter was $918 million, falling short of the consensus estimate of $1.01 billion.

Despite the revenue miss, the stock price rose 3.5% as the company's revenue outlook surpassed analyst expectations.

FMC's first-quarter revenue represented a 32% decline from the same period last year, with organic revenue down 31%. The adjusted earnings of $0.36 per diluted share also marked an 80% decrease compared to the first quarter of the previous year.

The company attributed the decline in revenue to a 27% drop in volume due to ongoing channel destocking across all regions, compounded by a 4% decrease in price and a 1% headwind from foreign currency.

Mark Douglas, FMC president and CEO, noted that "Free cash flow improved significantly, and we delivered adjusted EBITDA at the high end of our guidance range during the first quarter." He also mentioned that sales were impacted by inventory management actions by customers but were partially offset by the company's restructuring actions and resilient sales of new products, especially in Latin America.

Looking ahead, FMC maintains its full-year 2024 revenue outlook of $4.50 billion to $4.70 billion, reflecting a 2.5% growth at the midpoint compared to 2023. The adjusted EBITDA guidance remains unchanged at $900 million to $1.05 billion.

The company also reiterated its adjusted EPS outlook of $3.23 to $4.41, indicating a 1% increase at the midpoint versus the previous year.

For the second quarter of 2024, FMC forecasts revenue to be in the range of $1.00 billion to $1.15 billion, which would represent a 6% increase at the midpoint compared to the second quarter of 2023.

The adjusted EBITDA is expected to be between $170 million and $210 million, essentially flat compared to the prior-year period. Adjusted EPS for the second quarter is projected to be in the range of $0.43 to $0.72, a 15% increase at the midpoint over the second quarter of 2023.

Douglas expressed optimism about the future, stating, "Our second quarter revenue outlook includes volume growth for the first time since global destocking began in the second quarter of 2023." He anticipates the market will continue to improve throughout the year and transition to more normal conditions in 2025.

FMC's guidance for the second quarter of 2024, with EPS ranging from $3.23 to $4.41, stands above the analyst consensus of $3.81. Similarly, the full-year revenue guidance of $4.5 to $4.7 billion also beats the consensus estimate of $4.534 billion. The company's stock movement, although modest, reflects investor confidence in the company's revenue guidance beat.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.