Earnings Recap: FMC Corporation (NYSE: FMC)

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PHILADELPHIA, January 18, 2020 – Shares of FMC Corporation (NYSE: FMC) showed the bearish trend with a lower momentum of -0.60% to $99.00. The company traded total volume of 75.370K shares as contrast to its average volume of 846.78K shares. The company has a market value of $13.11B and about 131.63M shares outstanding.

FMC Corporation (FMC) reported third quarter 2k19 revenue of approximately $1.00B, an increase of 10 percent versus recast third quarter 2018, driven by double-digit organic growth in Brazil, Argentina, Mexico, France, India, China and Pakistan. Excluding the impact of foreign currencies, organic sales grew 12 percent year over year. On a GAAP basis, the company reported earnings of $0.69 per diluted share in the third quarter. This compares to recast GAAP earnings of $0.54 per diluted share in the third quarter of 2018.

2019 Outlook:

FMC is raising its guidance for full-year 2019. Revenue is now expected to be in the range of $4.58B to $4.62B, an increase of 7 percent at the midpoint versus recast 2018. Total company adjusted EBITDA is now expected to be in the range of $1.20B to $1.22B, an increase of 9 percent at the midpoint compared to recast 2018. FMC is also raising its 2019 adjusted earnings guidance to a range of $5.80 to $5.90 per diluted share, an increase of 12 percent at the midpoint compared to recast 2018. FMC continues to expect weighted average diluted shares outstanding (WADSO) of approximately 131.50M to 132.00M for the full year. EPS estimates include the impact of $300.0M in share repurchases completed year to date through September 30, 2019, as well as an additional $100.0M in share repurchases expected in Q4 2019.

Fourth Quarter Outlook:

Fourth quarter revenue is expected to be in the range of $1.17B to $1.21B, representing 8 percent growth at the midpoint compared to recast fourth quarter 2018. Total company adjusted EBITDA is forecasted to be in the range of $300.0M to $320.0M, representing a 13 percent increase at the midpoint versus recast Q4 2018. FMC expects adjusted earnings per diluted share to be in the range of $1.46 to $1.56 in the fourth quarter, representing an increase of 3 percent at the midpoint versus recast Q4 2018 and assuming WADSO of approximately 130.50M. Recast Q4 2018 adjusted earnings per diluted share benefitted from an unusually low tax rate.

The Company offered net profit margin of 11.00% while its gross profit margin was 44.70%. ROE was recorded as 18.10% while beta factor was 1.53. The stock, as of recent close, has shown the weekly upbeat performance of 0.07% which was maintained at -0.23% in this year.