FMC Corp (FMC) to Post Q1 Earnings: What's in the Offing?
Zacks Investment Research | Apr 29, 2020 06:29AM ET
FMC Corporation (NYSE:FMC) Earnings ESP Filter .
Zacks Rank: FMC currently carries a Zacks Rank #3.
What do the Estimates Say?
The company recently noted that its preliminary sales for the first quarter showed a rise of roughly 5% year over year. It also expects adjusted EBITDA and adjusted earnings to be $356 million and $1.81 per share, respectively, both at the midpoint of its first-quarter guidance ranges.
The Zacks Consensus Estimate for first-quarter sales is currently pegged at $1,233 million, which suggests a 3.4% rise year over year.
Some Factors at Play
Strong demand for the company’s herbicides and insecticides and benefits of new product launches are likely to get reflected on its first-quarter results. The company is seeing healthy demand from sugarcane growers in Brazil as well as solid demand for herbicides in soybean applications in Argentina. Strong demand for herbicides and insecticides is also driving the company’s agriculture business in North America. Healthy demand for insecticides is also driving volumes in Asia. Demand strength across these regions is likely to have continued in the quarter to be reported.
Moreover, FMC remains focused on boosting its market position and strengthening its product portfolio. It is investing in technologies and products as well as new launches to enhance value to the farmers. New products are likely to have contributed to its volumes in the March quarter.
However, the coronavirus pandemic is likely to have impacted supply chain and logistics in the first quarter. The company is likely to have faced headwind from higher raw material costs, partly due to supply disruptions in China amid the outbreak.
The company is also exposed to headwind from unfavorable currency translation, which might have impacted its sales and margins. It expects currency impact of $16 million for the first quarter.
FMC Corporation Price and EPS Surprise
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