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FMC Corp (FMC) Earnings and Revenues Surpass Estimates in Q1

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FMC Corporation FMC recorded earnings (as reported) of $1.40 per share in first-quarter 2021, down from $1.58 reported a year ago.

Barring one-time items, adjusted earnings per share were $1.53, beating the Zacks Consensus Estimate of $1.52.

Revenues were $1,195.6 million for the quarter, down 4% from the year-ago quarter. It, however, surpassed the Zacks Consensus Estimate of $1,170.3 million.

The decline in revenues was due to 4% lower volumes and 1% pricing headwind, partly offset by 1% favorable impact of currencies. The company saw lower sales across EMEA (Europe, Middle East, and Africa), North America and Latin America, partly offset by gains in Asia.

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 dropped 8% year over year in North America in the quarter as a shift of diamide third-party partner sales from North America to Latin America more than offset higher sales for herbicides and a strong launch of Xyway fungicide.

Sales in Latin America slipped 22% year over year in the reported quarter due to currency headwinds, lower cotton planting and the company’s channel inventory management.

In EMEA, sales fell 4% year over year, partly due to discontinued registrations. The company witnessed higher insecticide sales in the quarter.

Revenues climbed 18% year over year in Asia on the back of strong demand for Overwatch herbicide in Australia and higher diamide demand in the region.

Financials

The company had cash and cash equivalents of $416.7 million at the end of the quarter, down roughly 4% year over year. Long-term debt was $2,631.4 million, down around 25% year over year.

The company repurchased shares worth $75 million in the first quarter.

Guidance

For 2021, FMC continues to expect revenues to be between $4.9 billion and $5.1 billion, indicating a rise of 8% at the midpoint versus 2020. The growth is expected to be driven mainly by volumes and price increases.

Moreover, FMC envisions adjusted EBITDA of $1.32-$1.42 billion for 2021, indicating a 10% rise at the midpoint versus 2020.

The company has raised its adjusted earnings per share forecast for 2021 to the range of $6.70-$7.40 (up from $6.65-$7.35 expected earlier), reflecting an increase of 14% at the midpoint compared with 2020.

Free cash flow for 2021 is projected to be $530-$620 million, indicating a 6% year-over-year increase.

The company also expects to buyback $400-$500 million shares in 2021.

For second-quarter 2021, revenues are projected in the band of $1.19-$1.26 billion, reflecting an increase of 6% at the midpoint compared with the prior-year quarter. Adjusted earnings are forecast in the range of $1.68-$1.88 per share, representing an increase of 3% at the midpoint compared with the prior-year quarter.

Price Performance

FMC’s shares are up 32.5% over a year against the industry’s 78.4% rise.

Zacks Rank & Key Picks

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

Better-ranked stocks worth considering in the basic materials space include Nucor Corporation NUE, Dow Inc. DOW and Impala Platinum Holdings Limited IMPUY.

Nucor has a projected earnings growth rate of 228.4% for the current year. The company’s shares have rallied around 129% in a year. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Dow has a projected earnings growth rate of 261.5% for the current year. The company’s shares have shot up around 113% in a year. It currently sports a Zacks Rank #1.

Impala Platinum has an expected earnings growth rate of 197.6% for the current fiscal. The company’s shares have surged around 233% in the past year. It currently carries a Zacks Rank #1.

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