FMC Corp's Q3 revenue drops 80%, hurt by commercial actions and weak demand

Overview

• US agricultural sciences firm's Q3 revenue fell sharply, missing analyst expectations

• Q3 adjusted EBITDA was negative and missed analyst expectations

• Company says results reflect commercial actions and weaker demand

Outlook

• FMC sees Q4 revenue excluding India at $1.04 bln to $1.14 bln

• Company expects Q4 adjusted EBITDA of $210 mln to $230 mln

• FMC forecasts Q4 adjusted EPS of $0.56 to $0.70

Result Drivers

• COMMERCIAL ACTIONS - Co said Q3 results were heavily impacted by pricing and rebate changes in North America and adjustments on high-priced products held by channel customers

• LOWER VOLUMES - Co said channel customers in key markets reduced replenishment orders, leading to a 21% volume decline

• PRICE DECLINES - Co said Q3 prices fell 2% compared to prior year

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 14 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the agricultural chemicals peer group is "buy."

• Wall Street's median 12-month price target for FMC Corp is $9.00, about 101.3% above its October 28 closing price of $4.47

• The stock recently traded at 3 times the next 12-month earnings vs. a P/E of 6 three months ago

Reuters Recommended Reads

• Oct 29 - AGCO cites "weakest global industry demand in over a decade" for Q3 sales decline

• Oct 28 - John B Sanfilippo Q1 sales fall on lower selling prices

• Oct 29 - Bunge Q3 profit beats on oilseed processing strength

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)