Yahoo Finance FMC Corp (FMC) to Report Q4 Earnings: What's in the Offing?
FMC Corporation FMC will release fourth-quarter 2022 results after the closing bell on Feb 7.
The company beat the Zacks Consensus Estimate for earnings in each of the last four quarters. FMC has a trailing four-quarter earnings surprise of around 7.9%, on average. The company posted an earnings surprise of around 11.8% in the last reported quarter.
The company’s fourth-quarter performance is likely to have gained from higher demand, pricing and new products. However, higher raw material costs and unfavorable currency translation are likely to have affected its results.
Shares of FMC have increased 19.6% in the past year against a 6.9% rise of the industry.
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Let’s see how things are shaping up for this announcement.
What do the Estimates Say?
The company sees fourth-quarter revenues in the range of $1.42-$1.62 billion, reflecting an 8% rise at the midpoint compared with the prior-year quarter’s levels. Adjusted earnings are forecast in the range of $2.05-$2.55 per share, representing a rise of 9% at the midpoint from the prior-year quarter’s levels. It also expects adjusted EBITDA in the range of $395-$455 million for the quarter, representing a rise of 15% at the midpoint from the prior-year quarter’s levels.
The Zacks Consensus Estimate for fourth-quarter sales for FMC is currently pegged at $1,504 million, suggesting a 6.4% rise year over year.
The Zacks Consensus Estimate for North America revenue is currently pegged at $330 million, suggesting a 37% rise on a sequential comparison basis.
The consensus estimate for Latin America is pegged at $679 million, indicating a 3% sequential decline.
The Zacks Consensus Estimate for Europe, the Middle East and Africa sales stands at $202 million, calling for a 34% sequential rise.
The consensus estimate for Asia is pegged at $293 million, reflecting a 2% increase on a sequential comparison basis.
Some Factors at Play
FMC Corp is likely to have witnessed demand strength for its products and higher pricing in the December quarter.
The company is seeing healthy demand for its industry leading products, driven by strong global agricultural market fundamentals. Higher demand is expected to have supported fourth-quarter volumes.
FMC Corp’s new products are also likely to have contributed to the company's results in the to-be-reported quarter. The company is focused on boosting its market position and strengthening its product portfolio. It is investing in technologies and products and new launches to enhance farmers’ value.
However, FMC Corp is likely to have witnessed cost headwinds in the fourth quarter. The supply bottlenecks, exacerbated by the Russia-Ukraine conflict, have resulted in rising costs of some raw materials and active ingredients. Along with higher packaging costs, raw material and logistics costs are likely to have remained elevated in the December quarter. Higher raw materials and logistics costs might have impacted its performance in the quarter to be reported.
The company is also likely to have faced currency headwinds in the quarter, led by the weakening of European currencies. Currency headwinds are expected to have been a drag on its fourth-quarter performance.
FMC Corporation Price and EPS Surprise
FMC Corporation price-eps-surprise | FMC Corporation Quote
Zacks Model
Our proven model does not conclusively predict an earnings beat for FMC this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here.
Earnings ESP: Earnings ESP for FMC is 0.00%. The Zacks Consensus Estimate for earnings for the fourth quarter is currently pegged at $2.32. 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 (Hold).
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 an earnings beat this quarter:
Yamana Gold Inc. AUY, expected to release earnings on Feb 16, has an Earnings ESP of +8.33% and carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Yamana Gold’s fourth-quarter earnings has been revised 20% upward in the past 60 days. The Zacks Consensus Estimate for AUY’s earnings for the quarter is pegged at 6 cents.
Quaker Chemical Corporation KWR, expected to release earnings on Feb 23, has an Earnings ESP of +7.38%.
The Zacks Consensus Estimate for Quaker Chemical’s fourth-quarter earnings is currently pegged at $1.22. KWR currently carries a Zacks Rank #2.
Teck Resources Limited TECK, scheduled to release earnings on Feb 21, has an Earnings ESP of +3.48%.
The Zacks Consensus Estimate for Teck Resources’ fourth-quarter earnings is currently pegged at 94 cents. TECK currently carries a Zacks Rank #2.
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FMC Corporation (FMC) : Free Stock Analysis Report
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Teck Resources Ltd (TECK) : Free Stock Analysis Report
