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.
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