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FMC Corp (FMC) Tops Earnings and Revenue Estimates in Q2

Zacks Equity Research

FMC Corporation FMC logged earnings (as reported) of $1.32 per share in second-quarter 2019, up from 96 cents per share a year ago.  

Barring one-time items, adjusted earnings per share came in at $1.66 in the quarter, up 11% year over year. The figure exceeded the Zacks Consensus Estimate of $1.63. The results were aided by strong operating performance.

Revenues rose roughly 4% year over year to $1,206.1 million. It also surpassed the Zacks Consensus Estimate of $1,200.5 million. Sales were driven by strong growth across Brazil, India and EMEA.

Revenue growth was supported by 5% contribution from volume along with 3% contribution from price, which was partly offset by a 4% adverse impact of foreign currencies. The company achieved higher pricing in all regions in the reported quarter. It also saw higher demand for its premium product portfolio.
 

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 in Latin America climbed 29% year over year and 34% excluding foreign exchange. This was mainly driven by strong sales growth in cotton and sugarcane applications in Brazil, and strong pricing in the region.

Sales fell 2% year over year in North America, affected by poor planting conditions in the Midwest.

In EMEA, sales expanded 4% year over year (10% excluding foreign exchange). This was mainly driven by price increases as well as growth in diamides and improved market conditions in Russia and Ukraine.

Revenues fell 2% year over year in Asia, but expanded 4% barring foreign exchange. Sales rose more than 20% in India on a reported basis on the back of the company’s new commercial structure that was put in place last year.

Balance Sheet

The company had cash and cash equivalents of $83.4 million at the end of the quarter. Long-term debt was $2,144.3 million at the end of the quarter.

Guidance

For 2019, the company continues to expect revenues to be between $4.5 billion and $4.6 billion, indicating a rise of 6% at the midpoint versus recast 2018.

The company raised its adjusted earnings per share forecast to the range of $5.68- $5.88 from its earlier view of $5.62-$5.82. The revised guidance reflects an increase of 10% at the midpoint compared with recast 2018.

For third-quarter 2019, revenues are projected in the band of $960-$990 million, indicating 6% growth at the midpoint compared with recast third-quarter 2018. Adjusted earnings are forecst to be in the range of 75-85 cents per share, indicating 13% growth at the midpoint compared with recast third-quarter 2018 figure.

Price Performance

Shares of FMC are up 14.6% year to date, outperforming the industry’s decline of 19.5%.



 

Zacks Rank & Key Picks

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

A few better-ranked stocks worth considering in the basic materials space include Israel Chemicals Ltd. ICL, Flexible Solutions International Inc FSI and Air Products and Chemicals, Inc. APD.

Israel Chemicals has an expected earnings growth rate of 13.5% for the current year and carries a Zacks Rank #1 (Strong Buy). Its shares are up roughly 5% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.

Flexible Solutions has an expected earnings growth rate of 342.9% for the current fiscal year and carries a Zacks Rank #2 (Buy). Its shares have surged around 98% in the past year.

Air Products has an expected earnings growth rate of 10.6% for the current fiscal year and carries a Zacks Rank #2. The company’s shares have gained around 43% over the past year.  

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