Yahoo Finance FMC Corp (FMC) to Report Q1 Earnings: What's in the Cards?
FMC Corporation FMC will release first-quarter 2024 results after the closing bell on May 6.
The company beat the Zacks Consensus Estimate for earnings in one of the last four quarters while missing in the other three. FMC has a negative trailing four-quarter earnings surprise of around 4.3%, on average. The company reported a negative earnings surprise of around 1.8% in the last reported quarter.
FMC's first-quarter financial performance is likely to have faced challenges due to inventory de-stocking by growers in the distribution channel. Despite this headwind, the company's cost actions and new product launches are expected to have contributed to revenue growth.
FMC’s shares have plunged 46.9% in the past year against an 3.9% fall of the industry.
Image Source: Zacks Investment Research
What Do the Estimates Say?
The Zacks Consensus Estimate for first-quarter sales for FMC is currently pegged at $1,064.1 million, suggesting a 23.8% year-over-year fall.
The consensus estimate for North America’s revenues is currently pegged at $318 million, suggesting a 36% year-over-year decline.
The Zacks Consensus Estimate for Latin America sales is pegged at $174 million, indicating a 25.5% year-over-year plunge.
The consensus estimate for Europe, the Middle East and Africa (EMEA) sales is pegged at $328 million, calling for a 14% year-over-year fall.
The same for Asia is pegged at $219 million, indicating a 4.7% decline on a year-over-year basis.
Some Factors at Play
Contributions of new products are expected to have supported the company’s first-quarter performance. FMC is committed to enhancing its product portfolio by investing in advanced technologies and launching innovative products. The company's recent product releases in Europe, North America and Asia have gained significant traction, contributing to strong sales growth. In 2023, FMC generated $590 million in revenues from new products launched in the past five years. Looking ahead to 2024, the company anticipates that these recent product introductions will drive further growth, with an expected increase of nearly $200 million in revenues. The acquisition of BioPhero ApS, a Danish pheromone research and production company, also added biologically produced state-of-the-art pheromone insect control technology to FMC's offerings, underscoring its commitment to sustainable crop protection solutions.
FMC is expected to have benefited from reduced input costs, lower interest expenses and its cost-control measures. During the fourth quarter, the company saw positive impacts from lower input costs and strict management of SG&A and R&D expenditures. It expects that its restructuring efforts, including cuts to indirect spending and workforce reductions, will yield $50-$75 million in cost savings during 2024. These measures are likely to have contributed to the company's EBITDA growth.
However, the company is facing challenges due to ongoing inventory de-stocking, which has led to decreased demand and lower sales volumes. This trend, driven by lower prices of fertilizers and certain non-selective herbicides and higher interest rates, is expected to have persisted in the first quarter. FMC forecasts a 26% year-over-year revenue decline for the first quarter at the midpoint, with an estimated range of $925 million to $1.075 billion. The company's adjusted EBITDA is projected to be between $135 million and $165 million, reflecting a 59% drop at the midpoint due to lower volumes and gross margin pressures from high-cost inventory. These factors are likely to have impacted FMC's financial performance in the March quarter.
Zacks Model
Our proven model does not predict an earnings beat for FMC this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earning beat.
Earnings ESP: Earnings ESP for FMC is 0.00%. The Zacks Consensus Estimate for the first quarter is currently pegged at 35 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: FMC currently carries a Zacks Rank #3.
FMC Corporation Price and EPS Surprise
FMC Corporation price-eps-surprise | FMC Corporation Quote
Stocks That Warrant a Look
Here are some companies in the basic materials space you may want to consider, as our model shows these have the right combination of elements to post earnings beat this quarter:
Ero Copper Corp. ERO, slated to release earnings on May 7, has an Earnings ESP of +30.00% and carries a Zacks Rank #1 at present. You can see the complete list of today’s Zacks Rank #1 stocks here.
The Zacks Consensus Estimate for ERO’s first-quarter earnings is pegged at 5 cents.
Avient Corporation AVNT, expected to release earnings on May 7, has an Earnings ESP of +0.43% and carries a Zacks Rank #2 at present.
The consensus mark for AVNT’s first-quarter earnings is currently pegged at 69 cents.
Kinross Gold Corporation KGC, which is slated to release its earnings on May 7, has an Earnings ESP of +4.49% and a Zacks Rank #3 at present.
The consensus estimate for KGC’s first-quarter earnings is currently pegged at 6 cents.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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
Kinross Gold Corporation (KGC) : Free Stock Analysis Report
FMC Corporation (FMC) : Free Stock Analysis Report
Ero Copper Corp. (ERO) : Free Stock Analysis Report
Avient Corporation (AVNT) : Free Stock Analysis Report
