Philadelphia-based FMC Corporation (FMC), with a market cap of $7.2 billion, is an agricultural sciences company providing innovative solutions in crop protection, plant health, and pest management. It is set to announce its Q2 earnings for fiscal 2024 on Wednesday, Jul. 31.
Ahead of the event, analysts expect FMC to report a profit of $0.49 per share, down 2% from $0.50 per share in the year-ago quarter. The company has failed to exceed Wall Street’s EPS estimates in three of the last four quarters, surpassing only on one occasion. FMC’s EPS of $0.36 for the last reported quarter beat the consensus estimate by 2.9%.
Looking ahead, analysts expect FMC to report an EPS of $3.51 in fiscal 2024, down 7.1% from $3.78 in fiscal year 2023. However, its fiscal 2025 EPS is projected to rise 33.3% annually to $4.68.
FMC’s stock has dropped 39.5% over the past 52 weeks, underperforming the broader S&P 500 Index's ($SPX) 20.6% gains and the S&P 500 Material Sector SPDR Fund’s (XLB) 7.9% returns over the same time frame.
FMC’s weak price momentum over the past year can be attributed to the macroeconomic headwinds and market challenges. The company released its Q1 earnings report on May 6, and the market reacted negatively, sending the stock down 1.4%. However, the stock jumped 9.5% in the following trading session.
While it beat its bottom-line expectations in Q1, the company failed to surpass its revenue expectations. Moreover, FMC's North America segment experienced a 48% year-over-year sales decline, primarily due to reduced volume, compared to a record-breaking period the previous year. However, new products like Xyway and Adastrio fungicides demonstrated resilience, particularly in Latin America.
Despite the challenges, the current consensus opinion on FMC stock is “Moderate Buy” overall. Out of 19 analysts covering the stock, six suggest a “Strong Buy,” one recommends a “Moderate Buy,” 11 advise a “Hold,” and the remaining one analyst gives it a “Moderate Sell.”
Furthermore, the average analyst price target for FMC is $68.72, indicating a potential upside of 18.9% from the current price levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
