FMC Corporation shares rallied 30.4% on Friday after third-quarter results that looked weak on the surface, with revenue down 80% to $106 million and an adjusted loss of $4.41 per share, largely due to one-time price cuts and an accounting adjustment. Management guided fourth-quarter revenue to $1.11 billion at the midpoint, flat year over year, with adjusted EBITDA of $220 million and adjusted EPS of $0.63. The company also targets at least $650 million of EBITDA next year and $760 million in 2028. The article says the rally may reflect a low bar after the stock had traded in distressed territory, but could also be short-covering, and notes FMC's substantial debt load and past misses against its guidance.
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FMC Corporation's stock fell about 32.4% on Thursday morning, to 11:40 a.m. ET, after the company sharply cut its guidance. Analysts had expected third-quarter sales of $866.7 million and profit of $0.10 per share, but management now says revenue will fall by between $65 million and $125 million, with adjusted EBITDA of negative $510 million to $565 million. The company blames $625 million to $675 million in commercial actions to lower prices on certain products held by channel customers, along with weaker demand and generic competition. FMC is slashing prices to clear old inventory, though the article notes this is unlikely to lift revenue or profits much. With the stock valued above 30 times earnings, the article suggests it could stay flat for a long time.
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