FMC Corporation

Shares in FMC Corp. (FMC) tumbled more than 14% ahead of Tuesday’s opening bell after the agriculture chemical manufacturer issued weak first-quarter 澳洲幸运5官方开奖结果体彩网:earnings guidance as the company continues to grapple with low sales volumes and destocking challenges in the aftermath of the pandemic.

The maker of insecticides and harvest aids said it expects current quarter adjusted earnings to range between 21 and 43 cents per share, less than half the $1-a-share figure analysts had forecast. For the three month period ending December 31, the company posted 澳洲幸运5官方开奖结果体彩网:adjusted earnings per share (EPS) of $1.07, compared with $2.37 a year earlier, while revenue of $1.15 billion declined 29% from the prior year’s corresponding quarter.

FMC said that destocking presented ongoing challenges in all of its geographic regions. During the pandemic, 澳洲幸运5官方开奖结果体彩网:supply chain bottlenecks led many distributors to stockpile crop chemicals, resulting in excess inventory levels that 澳洲幸运5官方开奖结果体彩网:customers are ♑still working through. The chemical maker also said drought conditions in Brazil had weighed on earnings. In the December quarter, FMC’s Latin American business, which accounts for roughly a third of total revenue, posted a 38% decline in sales.

"During the fourth quarter, we observed continued channel destocking in all regions, while drought in Brazil also amplified challenges in Latin America," Chief Executive Officer Mark Douglas said in the company’s earning’s statement.

Since dropping below the key $50 level in in late October on the back of a disappointing third-quarter update, the FMC share price somewhat stabilized and even managed to claw back above the 澳洲幸运5官方开奖结果体彩网:50-day moving average. If earnings-driven selling intensifies in upcoming trading sessions, keep a close eye if buyers can defend the $50 level. A successful hold of this area could help shift investor sentiment, while a convincing 澳洲幸运5官方开奖结果体彩网:breakdown💮 may lead to a resumption of the long-term downtrend.

FMC shares were down 14.1% at 💯$51.88 about 45 🌸minutes before the opening bell.

The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our 澳洲幸运5官方开奖结果体彩网:warranty and liability disclaimer for more info.

As of the date this article was written, the author does not own any of the above securities.