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Make 2021 your best financial year yet!

FMC Corp's (FMC) Q1 Earnings Top Estimates, Revenues Miss

Zacks Equity Research
·4-min read

FMC Corporation FMC recorded earnings (as reported) of $1.58 per share in first-quarter 2020, down from $1.62 reported a year ago.  

Barring one-time items, adjusted earnings per share came in at $1.84, topping the Zacks Consensus Estimate of $1.81.

Revenues were $1,250 million for the quarter, up around 5% from the year-ago quarter. It lagged the Zacks Consensus Estimate of $1,251.4 million.

Revenue growth was supported by 7% contribution from volume and 2% contribution from pricing, partly offset by a 4% unfavorable impact of currencies. The company saw growth across Latin America, North America and EMEA (Europe, Middle East, and Africa).
 

FMC Corporation Price, Consensus and EPS Surprise

 

FMC Corporation Price, Consensus and EPS Surprise
FMC Corporation Price, Consensus and EPS Surprise

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

 

Regional Sales Performance

Sales in Latin America rose 26% year over year in the reported quarter driven by broad-based volume gains.

Sales went up 3% year over year in North America, supported by higher demand for Rynaxypyr insect control and new products.        

In EMEA, sales rose 1% year over year. This was driven by strong demand for fungicides and growth in herbicides.

Revenues fell 3% year over year in Asia, impacted by currency headwinds and product rationalizations that more than offset double-digit growth in India and Pakistan.

Financials

The company had cash and cash equivalents of $436.2 million at the end of the quarter, a roughly four-fold year-over-year increase. Long-term debt was $3,531.8 million at the end of the quarter, up 65% year over year.

Guidance

For 2020, FMC sees revenues to be between $4.65 billion and $4.85 billion, indicating a rise of 3% at the midpoint versus 2019.

The company also expects adjusted earnings per share in the range of $6.05-$6.70. The guidance reflects an increase of 5% at the midpoint compared with 2019.

Moreover, FMC envisions adjusted EBITDA of $1.23-$1.34 billion for 2020, indicating 5% growth at the midpoint versus 2019.

For second-quarter 2020, revenues are projected in the band of $1.17-$1.23 billion, flat at the midpoint compared with second-quarter 2019. Adjusted earnings are forecast in the range of $1.58-$1.74 per share, also flat at the midpoint compared with second-quarter 2019 figure.

Price Performance

FMC’s shares are down 10.3% year to date against the industry’s 28.2% decline.



 

 

Zacks Rank & Key Picks

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

Better-ranked stocks worth considering in the basic materials space are The Scotts Miracle-Gro Company SMG, Franco-Nevada Corporation FNV and Newmont Corporation NEM.

Scotts Miracle-Gro has an expected earnings growth rate of 15.9% for the current fiscal year. The company’s shares have gained roughly 44% in the past year. It currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Franco-Nevada has a projected earnings growth rate of 22% for the current year. It currently carries a Zacks Rank #2 (Buy). The company’s shares have surged roughly 105% in a year.

Newmont has a projected earnings growth rate of 95.5% for the current year. The company’s shares have rallied around 111% in a year. It currently has a Zacks Rank #2.

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