FMC Stock Sees Analyst Earnings Estimates Increased

NEW YORK (TheStreet) -- Analysts at Credit Suisse raised their earnings estimates on FMC (FMC) stock to $3.24 from $3.14 for 2015, to $3.93 from $3.89 for 2016, and to $4.70 from $4.65 for 2017.

The Philadelphia-based company provides solutions, applications and products for the agricultural, consumer and industrial markets.

Estimates were adjusted to reflect recent trends in the end-markets as well as "to better reflect the sequencing of its new/bigger Ag platform's earnings," analysts said.

In Friday's morning trading session, shares are falling 0.35% to $56.25.

Separately, TheStreet Ratings team rates FMC CORP as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

"We rate FMC CORP (FMC) a HOLD. The primary factors that have impacted our rating are mixed, some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and weak operating cash flow."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 14.0%. Since the same quarter one year prior, revenues fell by 12.9%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • Even though the current debt-to-equity ratio is 1.43, it is still below the industry average, suggesting that this level of debt is acceptable within the Chemicals industry. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 0.81 is weak.
  • Net operating cash flow has significantly decreased to -$297.20 million or 207.02% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • The share price of FMC CORP has not done very well: it is down 24.28% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. Looking ahead, we do not see anything in this company's numbers that would change the one-year trend. It was down over the last twelve months; and it could be down again in the next twelve. Naturally, a bull or bear market could sway the movement of this stock.
  • You can view the full analysis from the report here: FMC Ratings Report

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