FMC to Report Q1 Earnings: What's in the Cards for the Stock?

Core Viewpoint - FMC Corporation is expected to report its first-quarter 2025 results on April 30, with a history of beating earnings estimates and a trailing four-quarter earnings surprise of approximately 20.2% [1][4] Earnings Performance - FMC has consistently exceeded Zacks Consensus Estimates for earnings in the last four quarters, with an earnings surprise of 11.1% in the most recent quarter [1][2] - The Earnings ESP for FMC is +34.04%, indicating a strong likelihood of an earnings beat this quarter [4] Revenue Estimates - The Zacks Consensus Estimate for FMC's first-quarter sales is $779 million, reflecting a 15.1% year-over-year decline [7] - Revenue estimates for different regions include: - North America: $224.2 million, a 13.4% decline [7] - Latin America: $137.9 million, a 26.6% decline [7] - EMEA: $278.5 million, a 9.2% decline [8] - Asia: $144.8 million, an 11.8% decline [8] Factors Influencing Performance - FMC is expected to benefit from new product launches and cost-control measures, which are anticipated to support its performance despite challenges [2][9] - The company is focusing on expanding its product portfolio and has seen strong sales from its growth portfolio, including new active ingredients [9] - Cost reductions and a favorable product mix are expected to positively impact margins, with restructuring actions projected to yield $165 million in adjusted EBITDA for full-year 2024 and over $225 million in savings by the end of 2025 [10] Challenges Faced - FMC is likely to encounter challenges from inventory de-stocking and pricing pressures, which may negatively affect volumes and revenues [11][12] - The company projects first-quarter revenues in the range of $750-$800 million, indicating a 16% decrease at the midpoint compared to the same period in 2024 [11] - Weaker prices are expected to continue impacting revenues, with a mid-to-high single-digit price decline anticipated due to adjustments in partner contracts [12]