FMC Corp Expects Higher Q1 Earnings Aided by Strong Demand

FMC Corporation FMC has provided an update on the first quarter and fiscal 2018 expected performance. The company stated that it expects first-quarter adjusted earnings to exceed the high end of its prior guidance of $1.45-$1.59 per share. For full-year 2018, it anticipates adjusted earnings to exceed the high end of its prior guidance of $5.20-$5.60 per share.

The company is likely to witness a solid first-quarter performance on the back of strong segment earnings. In Agricultural Solutions segment, earnings will be driven by strong customer demand and lower achieved operating costs. The Lithium segment will also perform well in the first quarter courtesy of strengthening market conditions.

The company earlier announced a new, publicly traded lithium materials company, which will be created by separating the company’s lithium business through an IPO in the second half of 2018. The preparations for separating its lithium business are on track.

Shares of FMC Corporation have lost 15.2% in the past six months, underperforming the industry’s 4.2% decline.

FMC Corporation expects revenues to be $420-$460 million for the Lithium unit for 2018. Segment EBITDA is forecasted between $180 million and $200 million for the full year. For the first quarter, EBITDA is expected to be $44-$48 million.

For the Agricultural Solutions unit, FMC Corporation expects revenues for 2018 to be between $3.95 billion and $4.15 billion.

Zacks Rank & Stocks to Consider

FMC Corporation has a Zacks Rank #3 (Hold).

Some better-ranked stocks in the basic materials space are LyondellBasell Industries N.V. LYB, Kronos Worldwide Inc. KRO and BASF SE BASFY.

LyondellBasell has an expected long-term earnings growth rate of 9% and sports a Zacks Rank #1 (Strong Buy). The company’s shares have moved up 17.1% in a year. You can see the complete list of today’s Zacks #1 Rank stocks here.

Kronos has an expected long-term earnings growth rate of 5% and flaunts a Zacks Rank #1. Its shares have gained 38.7% over a year.

BASF has an expected long-term earnings growth rate of 6.7% and carries a Zacks Rank #2 (Buy). Its shares have moved up 2% in a year.

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