FMC shares sink on lower quarterly revenue forecast

FMC

05/02/2025 14:38

(Update)
    ** Agrichemicals firm FMC's  FMC.N  shares sink 34% to
$35.64 
    ** FMC posted Q4 2024 profit of $1.79 cents per share after
the markets closed on Tuesday, compared with analysts' average
estimate of $1.6 cents per share - data compiled by LSEG
    ** But it forecast Q1 2025 revenue below Wall Street
estimates 
    ** "Another year of inventory destocking will lead to lower
sales and profit growth and reduced free cash flow generation.
Management's guidance for free cash flow generation is less than
its dividend payment. This puts the dividend at risk should
sales and profits come in below guidance" - Morningstar analyst
Seth Goldstein 
    ** Brokerage cuts PT on FMC to $95 from $110
    ** Morgan Stanley cuts PT to $46 from $70 on "ongoing
financial performance challenges, execution risk associated with
the new strategy and elevated debt leverage"
    ** Bank of America cuts PT to $48 from $61 and downgrades
stock to "underperform" from "neutral"
        ** Says "earnings release highlighted additional broader
and company-specific challenges which in our view raise FMC's
risk profile substantially" 
  
    ** FMC is down 28% YTD

 (Reporting by Seher Dareen in Bengaluru)
 ((Seher.Dareen@thomsonreuters.com;))