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FMC Corporation FMC will release second-quarter 2021 results after the closing bell on Aug 3. Healthy demand and new product launches are likely to have supported its performance. However, the company’s results are likely to have been affected by cost and volume headwinds.
The company beat the Zacks Consensus Estimate for earnings in each of the last four quarters. It has a trailing four-quarter earnings surprise of 4.4%, on average. It posted an earnings surprise of 0.7% in the last reported quarter.
Shares of FMC have declined 2% in the past year compared with 32.1% 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 expects second-quarter revenues 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.
The Zacks Consensus Estimate for second-quarter sales for FMC is currently pegged at $1,228 million, which suggests a 6.3% rise year over year.
Some Factors at Play
FMC Corp is focused on boosting its market position and strengthening its product portfolio. It is investing in technologies and products as well as new launches to enhance value to the farmers. New products are likely to have contributed to its results in the second quarter. The company is also expected to have benefited from cost-management actions.
The company is also likely to have gained from higher demand for its products in the quarter to be reported. There is strong demand in North America backed by strong crop commodity prices. Healthy demand is also being witnessed in soybean and sugarcane applications in Brazil. Demand for herbicides also remains strong in Australia.
However, FMC Corp is likely to have faced headwind from volume pressure in the to-be-reported quarter. Its volumes declined 4% in the first quarter, hurt by a decline in cotton acreage in Brazil and discontinued registrations in the EMEA. Softness in the cotton business in Brazil is likely to have continued through the second quarter.
The company is also likely to have witnessed cost headwinds in the June quarter. It is facing challenges from higher supply-chain costs, partly due to supply disruptions from production issues in countries like China and India amid the coronavirus pandemic. It is seeing rising costs for some raw materials and active ingredients due to supply constraints. This might have impacted its performance in the second quarter.
FMC Corporation Price and EPS Surprise
FMC Corporation price-eps-surprise | FMC Corporation Quote
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 -3.12%. The Zacks Consensus Estimate for earnings for the second quarter is currently pegged $1.77. 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.
Stocks That Warrant a Look
Here are some companies in the basic materials space you may want to consider as our model shows they have the right combination of elements to post an earnings beat this quarter:
LyondellBasell Industries N.V. LYB, scheduled to release earnings on Jul 30, has an Earnings ESP of +6.99% and sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Westlake Chemical Corporation WLK scheduled to release earnings on Aug 3, has an Earnings ESP of +1.50% and carries a Zacks Rank #1.
Eastman Chemical Company EMN, scheduled to release earnings on Aug 2, has an Earnings ESP of +0.90% and carries a Zacks Rank #3.
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Westlake Chemical Corporation (WLK) : Free Stock Analysis Report
Eastman Chemical Company (EMN) : Free Stock Analysis Report
FMC Corporation (FMC) : Free Stock Analysis Report
LyondellBasell Industries N.V. (LYB) : Free Stock Analysis Report
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