FMC Corp's Q4 Earnings Beat Expectations, But Revenue Falls Short
Alright, let’s talk about FMC Corporation’s latest financial performance. The company recently released its fourth-quarter and full-year 2024 results, and there’s a lot to unpack. On the earnings front, FMC actually outperformed expectations. Adjusted earnings per share (EPS) came in at $1.79, which was higher than the projected $1.61. That’s a solid beat. However, the revenue side of things wasn’t as strong. The company reported $1.22 billion in revenue, which, while up about 6.8% from last year’s quarter, still fell short of analyst expectations of $1.32 billion.
So, what’s driving this mixed performance? Well, a big factor in revenue growth was a 15% increase in volume, especially in key markets like the United States. However, this wasn’t enough to fully counteract some of the pricing pressures and economic uncertainties affecting FMC’s business. Looking at regional performance, North America saw a 23% revenue increase, reaching $340 million, but still missed expectations. Latin America, on the other hand, struggled, with sales dropping 10% year over year. Asia and EMEA (Europe, Middle East, and Africa) performed better, showing 10% and 18% revenue growth, respectively.
Now, if we zoom out and look at the full-year 2024 numbers, things don’t look as great. Revenue came in at $4.25 billion, marking a 5.4% decline from 2023. The company's net income also dropped sharply—by a staggering 74%—ending the year at $341.1 million. Earnings per share for the year followed a similar trend, coming in at $2.72, a 74.2% drop from the previous year.
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On the financial health side, FMC closed the quarter with $357.3 million in cash and equivalents, which is an 18.1% increase year over year. However, long-term debt remains a concern, standing at $3.03 billion.
Looking ahead, FMC has provided guidance for 2025, and the forecast suggests a bit of a rocky road. First-quarter revenue is expected to be between $750 million and $800 million, which would be a 16% decline from last year. Volume is expected to take a hit as customers continue cutting inventory and being more cautious in their purchases due to low commodity prices. Adjusted EBITDA for Q1 is projected between $105 million and $125 million, representing a 28% decline. And earnings per share for Q1? FMC is expecting a range of just $0.05 to $0.15, which is a sharp 72% drop from last year.
For the full year 2025, the company expects revenue to land between $4.15 billion and $4.35 billion—essentially flat compared to 2024. Adjusted EBITDA is projected to grow slightly, reaching between $870 million and $950 million, but adjusted EPS is expected to be in the range of $3.26 to $3.70, similar to last year’s numbers.
In terms of stock performance, FMC hasn’t seen much movement—gaining only about 1.1% over the past year, while the broader industry climbed 3%. The company currently holds a Zacks Rank #4 (Sell) , meaning analysts aren’t too bullish on its near-term prospects. However, some better-ranked stocks in the basic materials sector include Hecla Mining Company (HL), Ingevity Corporation (NGVT), and ICL Group Ltd. (ICL), all of which have been outperforming expectations recently.
So, what does all this mean? Well, while FMC did well on earnings, the revenue miss and weaker forward guidance paint a less optimistic picture. The company is facing some real challenges, particularly with pricing pressures and customer demand. That being said, it’s still holding its ground in key markets and showing resilience. Whether that’s enough to turn things around in 2025 remains to be seen. Stay tuned, because FMC’s next moves will be crucial in determining where this stock goes next.
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