FMC
stock was tumbling Tuesday after the crop-protection company reported what one analyst called “disappointing” fiscal-year guidance.
”2024 guidance is disappointing and implying flat earnings this year,” analyst Joel Jackson at BMO Capital Markets wrote in a research note. He has a Neutral rating on the stock and a $63 price target.
FMC
said after the close of trading Monday that it expects to report fiscal 2024 revenue between $4.5 billion to $4.7 billion, while analysts surveyed by FactSet were expecting revenue of $4.7 billion. Adjusted earnings before interest, taxes, depreciation, and amortization for the year is now expected to be between $900 million to $1.05 billion, compared with analysts’ estimates of $1.08 billion.
The latest guidance is down from the outlook the fertilizer company gave at its investor day on Nov. 16: revenue between $4.65 billion to $4.85 billion and Ebitda between $1.03 billion to $1.13 billion.
Shares of
FMC
were falling 9.6% to $54.65. The stock, which was the top decliner in the
S&P 500
Tuesday, has dropped 57% over the past 12 months. The S&P 500 was down 0.1%.
For its fourth quarter, FMC posted earnings of $1.07 a share on revenue of $1.15 billion. Analysts surveyed by FactSet were expecting earnings of $1.08 a share on revenue of $1.24 billion.
”During the fourth quarter we observed continued channel destocking in all regions, while drought in Brazil also amplified challenges in Latin America,” Chief Executive Mark Douglas said in a press release.
KeyBanc Capital Markets analyst Aleksey Yefremov rates the stock at Overweight with a $63 price target.
“Until we see volumes and margins turn up (we think in mid-’24) the question of more company-specific challenges could continue to weigh on shares,” Yefremov said in a research note.
Write to Angela Palumbo at angela.palumbo@dowjones.com
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