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

By Reuters News


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

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Miss

$106 mln

$859.59 mln (13 Analysts)

Q3 Net Loss

$2.07 bln

Q3 Adjusted EBITDA

Miss

-$559 mln

$127.73 mln (13 Analysts)


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


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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