FMC Corp (FMC) Earnings and Revenues Top Estimates in Q3

FMC Corporation FMC recorded earnings (as reported) of $1.22 per share in third-quarter 2021, up 44% from 85 cents reported a year ago.

Barring one-time items, adjusted earnings per share were $1.43, topping the Zacks Consensus Estimate of $1.30.

Revenues were $1,194 million for the quarter, up around 10% from the year-ago quarter. It surpassed the Zacks Consensus Estimate of $1,166.4 million.

Revenues were driven by a 9% rise in volumes and 1% favorable impact of currencies. The company benefited from strong product demand, its focus on increasing prices and cost discipline amid headwinds from supply-chain and logistics issues in the reported quarter.

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 dropped 6% year over year in North America in the quarter, impacted by a shift in volume by geography from the company’s global diamide partnerships.

Sales in Latin America went up 11% year over year in the reported quarter on soybean and corn growth in Brazil and Argentina as well as higher prices.

In EMEA, sales rose 12% year over year on higher demand for diamides and herbicides in the region.

Revenues climbed 20% year over year in Asia on the back of broad-based volume gains and higher prices across nearly all countries.

Financials

The company had cash and cash equivalents of $341 million at the end of the quarter, up roughly 15% year over year. Long-term debt was $2,631.7 million, down around 13% year over year.

The company repurchased shares worth $200 million in the third quarter.

Guidance

For 2021, FMC continues to expect revenues between $4.9 billion and $5.1 billion, indicating a rise of 8% at the midpoint versus 2020.

The company also reaffirmed its adjusted EBITDA guidance in the band of $1.29-$1.35 billion for 2021, indicating a 6% rise at the midpoint versus 2020.

FMC raised its adjusted earnings per share outlook for 2021 to the range of $6.59-$6.99 from $6.54-$6.94 expected earlier, suggesting an increase of 10% at the midpoint compared with 2020.

Free cash flow for 2021 is projected to be $480-$570 million, indicating a 4% year-over-year decline.

The company also expects to buyback $350-$450 million shares in 2021.

For fourth-quarter 2021, revenues are projected in the band of $1.27-$1.47 billion, reflecting an increase of 19% at the midpoint compared with the prior-year quarter. Adjusted earnings are forecast in the range of $1.80-$2.20 per share, representing an increase of 41% at the midpoint compared with the prior-year quarter.

Price Performance

FMC’s shares are down 10.7% over a year against the industry’s 24.2% rise.

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Zacks Rank & Key Picks

FMC currently carries a Zacks Rank #4 (Sell).

Better-ranked stocks worth considering in the basic materials space include Nutrien Ltd. NTR, Steel Dynamics, Inc. STLD and Methanex Corporation MEOH, both sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Nutrien has an expected earnings growth rate of 181.7% for the current year. The stock has also rallied around 76% over a year.

Steel Dynamics has a projected earnings growth rate of 477.5% for the current year. The company’s shares have surged around 94% in a year.

Methanex has a projected earnings growth rate of 467.9% for the current year. The company’s shares have shot up around 50% in a year.

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