Why Is FMC (FMC) Down 10.7% Since Last Earnings Report?

A month has gone by since the last earnings report for FMC (FMC). Shares have lost about 10.7% in that time frame, underperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is FMC due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. FMC's Earnings and Sales Surpass Estimates in Q3 on Higher VolumesFMC logged earnings of 52 cents per share in third-quarter 2024. This compares favorably with a loss of 3 cents in the year-ago quarter. Barring one-time items, adjusted earnings per share were 69 cents, topping the Zacks Consensus Estimate of 49 cents.Revenues were roughly $1.06 billion, up around 9% from the year-ago quarter’s level. The top line surpassed the Zacks Consensus Estimate of $1.03 billion.The top line in the reported quarter was driven by a 17% year-over-year rise in volumes.  This was partly offset by a 5% price decline and a 3% currency headwind. The company benefited from volume growth and lower costs from restructuring actions in the reported quarter. FMC saw strong volume growth in Latin America and North America, partly masked by lower pricing driven by Latin America due to challenging market conditions in Brazil and Argentina.Regional Sales PerformanceIn North America, sales climbed 48% year over year to $236 million in the quarter on higher volumes. It was above the consensus estimate of $205.9 million.Latin American sales saw an 8% year-over-year increase to $504 million in the reported quarter, primarily due to higher volumes that more than offset weak pricing in Brazil and Argentina. It beat the consensus estimate of $484.2 million.In Asia, revenues declined 10% compared to the previous year to $187 million, hurt by lower volumes and reduced prices. It was above the consensus estimate of $174.7 million.EMEA saw a 7% year-over-year sales decline to $139 million in the reported quarter due to registration losses. It missed the consensus estimate of $155.5 million.FinancialsThe company had cash and cash equivalents of $416.7 million, down roughly 12% sequentially. Long-term debt was $3.03 billion, flat sequentially.The company generated cash from operations of $160 million and a free cash flow of $132 million in the third quarter.GuidanceFMC sees revenues between $4.33 billion and $4.44 billion for 2024, indicating a 2% decline at the midpoint compared to 2023. Adjusted EBITDA is expected in the range of $885-$915 million, suggesting an 8% decline at the midpoint compared to the prior year. Adjusted earnings are now forecast in the band of $3.16-$3.52 per share, reflecting a 12% year-over-year decline at the midpoint. Full-year free cash flow is anticipated to be $400-$500 million.FMC also forecasts fourth-quarter revenues to be between $1.3 billion to $1.41 billion, reflecting a 19% increase at the midpoint compared to the fourth quarter of 2023. Adjusted EBITDA is forecast in the band of $321-$351 million, indicating a 32% rise versus the prior-year period’s levels. Adjusted earnings are expected in the range of $1.47-$1.83 in the fourth quarter, calling for a 54% rise at the midpoint compared with fourth-quarter 2023 levels.How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in fresh estimates.VGM ScoresAt this time, FMC has a poor Growth Score of F, however its Momentum Score is doing a bit better with a D. However, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, FMC has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.Free: 5 Stocks to Buy As Infrastructure Spending SoarsTrillions of dollars in Federal funds have been earmarked to repair and upgrade America’s infrastructure. In addition to roads and bridges, this flood of cash will pour into AI data centers, renewable energy sources and more.In, you’ll discover 5 surprising stocks positioned to profit the most from the spending spree that’s just getting started in this space.Download How to Profit from the Trillion-Dollar Infrastructure Boom absolutely free today.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 FMC Corporation (FMC): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks