Why Is FMC (FMC) Down 10.7% Since Last Earnings Report?

Core Viewpoint - FMC's recent earnings report showed a significant improvement in earnings and sales, but the stock has underperformed the S&P 500, raising questions about future performance leading up to the next earnings release [1][2]. Earnings Performance - In Q3 2024, FMC reported earnings of 52 cents per share, a recovery from a loss of 3 cents in the same quarter last year. Adjusted earnings per share were 69 cents, exceeding the Zacks Consensus Estimate of 49 cents [2]. - Revenues reached approximately $1.06 billion, reflecting a 9% increase year-over-year and surpassing the Zacks Consensus Estimate of $1.03 billion [2]. Volume and Pricing Dynamics - The revenue growth was driven by a 17% year-over-year increase in volumes, although this was partially offset by a 5% decline in prices and a 3% negative impact from currency fluctuations [3]. - Volume growth was particularly strong in Latin America and North America, despite lower pricing pressures in Latin America due to challenging market conditions in Brazil and Argentina [3]. Regional Sales Performance - North America saw a 48% year-over-year increase in sales to $236 million, exceeding the consensus estimate of $205.9 million [4]. - Latin American sales increased by 8% year-over-year to $504 million, beating the consensus estimate of $484.2 million [4]. - In Asia, revenues declined by 10% year-over-year to $187 million, while EMEA experienced a 7% decline to $139 million, missing the consensus estimate [5]. Financial Position - FMC reported cash and cash equivalents of $416.7 million, down approximately 12% sequentially, with long-term debt remaining flat at $3.03 billion [6]. - The company generated cash from operations of $160 million and free cash flow of $132 million in Q3 [6]. Guidance and Future Outlook - For 2024, FMC projects revenues between $4.33 billion and $4.44 billion, indicating a 2% decline at the midpoint compared to 2023. Adjusted EBITDA is expected to be in the range of $885-$915 million, suggesting an 8% decline at the midpoint [7]. - Fourth-quarter revenues are forecasted to be between $1.3 billion and $1.41 billion, reflecting a 19% increase at the midpoint compared to Q4 2023 [8]. - Adjusted earnings for the fourth quarter are expected to range from $1.47 to $1.83, indicating a 54% rise at the midpoint compared to the same period last year [9]. Estimate Trends - Recent estimates for FMC have shown a downward trend, indicating a shift in market expectations [10][12]. - The stock currently holds a Zacks Rank 3 (Hold), suggesting an expectation of an in-line return in the coming months [12]. VGM Scores - FMC has a poor Growth Score of F, a Momentum Score of D, and a Value Score of B, resulting in an aggregate VGM Score of D [11].