On February 5, 2025, Arun Viswanathan from RBC Capital set a price target of $47 for FMC Corporation (NYSE:FMC), while the stock was trading at $55.78. This suggests a potential downside of approximately -15.74% from the target. The downgrade to "Sector Perform" from "Outperform" by RBC Capital, as highlighted by TheFly, reflects a cautious outlook on the stock.
FMC Corporation, a global agricultural sciences company, recently held its Fourth Quarter 2024 Earnings Conference Call. Key executives, including CEO Pierre Brondeau and CFO Andrew Sandifer, discussed the company's financial performance. The call was attended by analysts from major financial institutions, indicating significant interest in FMC's financial health and future prospects.
In the fourth quarter of 2024, FMC reported a revenue of $1.22 billion, a 7% increase from the previous year. This growth was driven by volume increases in its growth portfolio, which helped offset foreign exchange challenges. Excluding currency impacts, organic revenue rose by 12% year-over-year, showcasing the company's ability to expand its core business.
Despite the revenue growth, FMC faced a consolidated GAAP net loss of $16 million in the fourth quarter, a stark contrast to the previous year's performance. However, adjusted EBITDA increased by 33% to $339 million, slightly above the guidance midpoint. Adjusted earnings per diluted share also rose by 67% to $1.79, indicating improved operational efficiency.
For the full year of 2024, FMC's revenue was $4.25 billion, a 5% decrease from 2023. The company reported a consolidated GAAP net income of $342 million, down 74% from the previous year. Despite these declines, FMC improved its cash flow significantly, with free cash flow rising by $1.14 billion to $614 million, highlighting effective cash management.
Looking ahead to 2025, FMC forecasts revenue between $4.15 billion and $4.35 billion, with a 3% growth excluding divestitures. Adjusted EBITDA is projected to be between $870 million and $950 million, reflecting a modest increase. The company anticipates cost savings from raw material deflation and restructuring actions, which could positively impact its financial performance.
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