Shares of agricultural sciences company FMC Corp (NYSE:FMC) are down in double digits in the morning session today after its financial outlook disappointed investors.
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FMC has taken its revenue and EPS expectations for the third quarter a notch lower to $982 million and $0.44, respectively. This lowered outlook is a result of a decline in sales volume in Latin America, fuelled by destocking in Brazil and a drought in Argentina.
For Fiscal Year 2023, FMC expects revenue to be in the range of $4.48 billion to $4.72 billion. Adjusted EBITDA for the year is anticipated to be in the range of $970 million to $1.03 billion. The company expects revenue for the fourth quarter to hover between $1.14 billion and $1.38 billion. Adjusted EBITDA in Q4 is seen landing between $246 million and $306 million.
Importantly, FMC expects the global destocking trend to persist into the next year. Consequently, it has initiated a restructuring process for its Brazil operations and a broader review of its cost structure.
Further details on these moves are anticipated during FMC’s Investor Day on November 16. The company is slated to announce third-quarter numbers on October 30. The Street has pegged the EPS for the quarter at $1 on revenue of $1.20 billion.
What is the Target Price for FMC?
Overall, the Street has a Moderate Buy consensus rating on FMC. The average FMC price target of $94.79 implies a hefty 69.3% potential upside.
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