FMC Corp (FMC) to Post Q3 Earnings: What's in the Offing?
FMC Corporation FMC will release third-quarter 2021 results after the closing bell on Nov 2. Healthy demand and new product launches are likely to have supported the company’s performance in the third quarter. However, its results are likely to have been affected by cost 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 3.9%, on average. It posted an earnings surprise of 2.3% in the last reported quarter.
Shares of FMC have declined 11.6% in the past year compared with the 29.2% rise of the industry.
Image Source: Zacks Investment Research
Let’s see how things are shaping up for this announcement.
What do the Estimates Say?
The company expects third-quarter revenues in the band of $1.13-$1.22 billion, reflecting an increase of 8% at the midpoint compared with the prior-year quarter. Adjusted earnings are forecast in the range of $1.23-$1.39 per share, representing an increase of 7% at the midpoint compared with the prior-year quarter.
The Zacks Consensus Estimate for third-quarter sales for FMC is currently pegged at $1,166 million, which suggests a 7.5% rise year over year.
Some Factors at Play
Contributions of new products are likely to have contributed to the company's results in the third quarter. 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.
The company is also 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 strong crop commodity prices. Strong demand is also being witnessed in soybean and sugarcane applications in Brazil. Demand for herbicides also remains strong in Australia. FMC Corp is also seeing strength in its insecticide portfolio in Asia. Higher demand is expected to have supported its third-quarter volumes.
However, FMC Corp likely to have witnessed cost headwinds in the September quarter. It is facing challenges from higher supply-chain costs, partly due to supply disruptions from production issues amid the coronavirus pandemic. It is seeing rising costs for certain raw materials due to supply constraints. Higher raw materials, packaging and logistics costs might have impacted its performance in the third quarter.
FMC Corporation Price and EPS Surprise
FMC Corporation price-eps-surprise | FMC Corporation Quote
Zacks Model
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 -4.47%. The Zacks Consensus Estimate for earnings for the third quarter is currently pegged at $1.30. 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 #4 (Sell).
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:
Tronox Holdings plc TROX, scheduled to release earnings on Oct 27, has an Earnings ESP of +0.38% and carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Chemours Company CC, scheduled to release earnings on Nov 4, has an Earnings ESP of +1.26% and carries a Zacks Rank #2.
Albemarle Corporation ALB, scheduled to release earnings on Nov 3, has an Earnings ESP of +8.73% and carries a Zacks Rank #3.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Albemarle Corporation (ALB) : Free Stock Analysis Report
FMC Corporation (FMC) : Free Stock Analysis Report
Tronox Holdings PLC (TROX) : Free Stock Analysis Report
The Chemours Company (CC) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
