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FMC Corporation FMC will release second-quarter 2022 results after the closing bell on Aug 2. The company’s performance is likely to have gained from higher demand, pricing and new products. However, higher raw material and logistics costs are likely to have affected the performance.
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 7.6%, on average. The company posted an earnings surprise of around 11.2% in the last reported quarter.
Shares of FMC have increased 3% in the past year against a 9.9% decline 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 $1.31-$1.39 billion, suggesting an increase of 9% at the midpoint compared with the prior-year quarter’s levels. Adjusted earnings are forecast in the range of $1.70-$2.00 per share, suggesting an increase of 2% at the midpoint compared with the prior-year quarter’s levels.
The Zacks Consensus Estimate for second-quarter sales for FMC is currently pegged at $1,347 million, suggesting an 8.5% rise year over year. Our estimate for the quarter is $1,341.6 million.
The Zacks Consensus Estimate for North America revenue is currently pegged at $322 million, suggesting a 17.4% sequential decline. Our estimate for the quarter is $294.1 million.
The consensus estimate for Latin America is pegged at $353 million, indicating an increase of 32.7% sequentially. Our estimate for the quarter is $355.2 million.
The Zacks Consensus Estimate for Europe, the Middle East and Africa sales stands at $266 million, calling for a sequential decline of 33.2%.Our estimate for the quarter is pegged at $278 million.
The consensus estimate for Asia is pegged at $402 million, indicating a 35.4% sequential rise. Our estimate for the quarter is pegged at $414.3 million.
Some Factors at Play
FMC Corp is likely to have witnessed demand strength for its products and higher pricing in the second quarter.
FMC Corp’s new products are likely to have contributed to the company's results in the June 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.
The company is likely to have gained from higher demand for its products in the quarter to be reported. There is healthy demand in North America backed by high crop commodity prices. Strong demand is also being witnessed in corn, sugarcane and soybean applications in Brazil. The demand for herbicides also remains strong in Australia. FMC Corp also sees strength in its insecticide portfolio in Asia. Higher demand is expected to have supported second-quarter volumes.
FMC Corp is likely to have witnessed cost headwinds in the June quarter. It is seeing rising costs for certain raw materials due to supply constraints. Higher raw materials and logistics costs might have impacted its performance in the second quarter.
It is also likely to have faced currency headwinds in the quarter, particularly in Europe, led by the euro. Currency headwinds are expected to have been a drag on its performance.
Our proven model does not conclusively predict an earnings beat for FMC Corp 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 Corp is -0.44%. The Zacks Consensus Estimate for second-quarter earnings is currently pegged at $1.90. Our estimate for the quarter is $1.91. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: FMC Corp currently carries a Zacks Rank #3.
FMC Corporation Price and EPS Surprise
FMC Corporation price-eps-surprise | FMC Corporation Quote
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:
Albemarle Corporation ALB, scheduled to release earnings on Aug 3, has an Earnings ESP of +11.9% 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 Albemarle’s second-quarter earnings has been revised 21.5% upward in the past 60 days. The consensus estimate for ALB’s earnings for the quarter is currently pegged at $2.94.
Cabot Corporation CBT, slated to release earnings on Aug 8, has an Earnings ESP of +0.16% and sports a Zacks Rank #1.
The consensus estimate for Cabot’s fiscal third-quarter earnings has been revised 1% upward in the past 60 days. The Zacks Consensus Estimate for CBT’s earnings for the quarter is pegged at $1.53.
Air Products and Chemicals, Inc. APD, slated to release earnings on Aug 4, has an Earnings ESP of +0.29% and carries a Zacks Rank #3.
The Zacks Consensus Estimate for Air Products’ fiscal third-quarter earnings has been stable over the past 60 days. The consensus estimate for APD’s earnings for the quarter stands at $2.61.
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