The stock of FMC Corp. (FMC) is down 34% after the U.S. chemical manufacturer reported ghastly quarterly financial results.
Maximize Your Portfolio with Data Driven Insights:
- Leverage the power of TipRanks' Smart Score, a data-driven tool to help you uncover top performing stocks and make informed investment decisions.
- Monitor your stock picks and compare them to top Wall Street Analysts' recommendations with Your Smart Portfolio
The Philadelphia-based company that is largely focused on the agricultural sector and insecticides reported financial results that were worse than expected, and also issued weak forward guidance, sending investors running for the exits.
FMC posted earnings per share (EPS) of $1.79 for the fourth-quarter of 2024, surpassing the consensus estimate of $1.63. However, revenue of $1.22 billion missed Wall Street forecasts of $1.34 billion. Sales were up 7% from a year earlier.
Disappointing Guidance
Perhaps worse than the Q4 print was the forward guidance provided by FMC, which came in well below Wall Street’s expectations. The company said it now expects full-year earnings of $3.26 to $3.70. That was short of the consensus expectation of $4.36 among analysts. Revenue guidance of $4.15 billion to $4.35 billion also fell short of the $4.40 billion anticipated on the Street.
Management blamed the soft guidance on countries around the world holding significantly less inventory than in the recent past. Despite the poor results, FMC did achieve strong cash generation in 2024, with cash flow from operations improving to $737 million. FMC stock is now down 31% over the past year.
Is FMC Stock a Buy?
The stock of FMC Corp. has a consensus Moderate Buy rating among 13 Wall Street analysts. That rating is based on five Buy, seven Hold, and one Sell recommendations issued in the last three months. The average FMC price target of $61 implies 70% upside from current levels. These ratings are likely to change after the company’s recent earnings report.
