Yahoo Finance FMC Corp (FMC) to Report Q1 Earnings: What's in Store?
FMC Corporation FMC will release first-quarter 2023 results after the closing bell on May 1.
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 6.7%, on average. The company posted an earnings surprise of around 2.2% in the last reported quarter.
The company’s first-quarter performance is likely to have gained from healthy demand, pricing actions and new products. However, higher raw material costs and unfavorable currency translation are likely to have affected its results.
Shares of FMC have declined 6.4% in the past year against a 3.2% decline of the industry.
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Let’s see how things are shaping up for this announcement.
Zacks Model
Our proven model predicts an earnings beat for FMC this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earning beat.
Earnings ESP: Earnings ESP for FMC is +0.86%. The Zacks Consensus Estimate for the first quarter is currently pegged $1.74. 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 #2.
What do the Estimates Say?
The company sees first-quarter 2023 revenues in the range of $1.41-$1.45 billion, reflecting a 6% rise at the midpoint compared with the prior-year quarter’s levels. Adjusted earnings are forecast in the range of $1.63-$1.83 per share, representing a decline of 8% at the midpoint from the prior-year quarter’s levels. It also expects adjusted EBITDA in the range of $345-$365 million for the quarter, flat at the midpoint from the prior-year quarter’s levels.
The Zacks Consensus Estimate for first-quarter sales for FMC is currently pegged at $1,430 million, suggesting a 5.9% year over year rise.
The Zacks Consensus Estimate for North America revenue is currently pegged at $428 million, suggesting a 9.7% year over year rise.
The consensus estimate for Latin America is pegged at $286 million, indicating a 7.5% year over year increase.
The Zacks Consensus Estimate for Europe, the Middle East and Africa sales stands at $408 million, calling for a 2.5% year over year rise.
The consensus estimate for Asia is pegged at $309 million, reflecting a 4% increase on a year-over-year basis.
Some Factors at Play
FMC Corp is likely to have witnessed heathy demand for its products and higher pricing in the first quarter.
The company is seeing favorable demand for its industry leading products, driven by strong global agricultural market fundamentals. Higher demand is expected to have supported first-quarter volumes and top line.
FMC Corp’s new products are also likely to have contributed to the company's volumes in the to-be-reported 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’s price increase actions are also expected to have supported its sales and margins.
However, FMC Corp is likely to have witnessed cost headwinds in the March quarter. The supply bottlenecks, exacerbated by the Russia-Ukraine conflict, have resulted in rising costs of some raw materials and active ingredients. Raw material and logistics costs are likely to have remained elevated in the first quarter.
The company is also likely to have faced currency headwinds in the quarter, led by the weakening of European currencies. Currency headwinds are expected to have been a drag on its first-quarter performance.
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 too have the right combination of elements to post an earnings beat this quarter:
Albemarle Corporation ALB, slated to release earnings on May 3, has an Earnings ESP of +0.80%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Albemarle’s earnings for the first quarter is pegged at $6.93. ALB currently carries a Zacks Rank #3.
Axalta Coating Systems Ltd. AXTA, slated to release earnings on May 2, has an Earnings ESP of +4.35%.
The consensus estimate for Axalta Coating Systems’ earnings for the first quarter is currently pegged at 31 cents. AXTA currently carries a Zacks Rank #3.
Ternium S.A. TX, scheduled to release earnings on Apr 25, has an Earnings ESP of +10.85% and currently carries a Zacks Rank #3.
The Zacks Consensus Estimate for TX’s first-quarter earnings has been revised 5.4% upward in the past 60 days. The consensus estimate for TX’s earnings for the first quarter is currently pegged at 98 cents.
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FMC Corporation (FMC) : Free Stock Analysis Report
Axalta Coating Systems Ltd. (AXTA) : Free Stock Analysis Report
