S&P 500 (NYSE:SPY) component FMC Corporation (NYSE:FMC) will unveil its latest earnings on Monday, October 29, 2012. FMC is a chemical manufacturing company that offers solutions, applications and products to agricultural, consumer and industrial markets around the world. .
FMC Corporation Earnings Preview Cheat Sheet
Wall St. Earnings Expectations: The average analyst estimate is for net income of 78 cents per share, a rise of 13% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 82 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 78 cents during the last month. Analysts are projecting profit to rise by 16.1% versus last year to $3.47.
Past Earnings Performance: Last quarter, the company beat estimates by 2 cents, coming in at profit of 92 cents a share versus the estimate of net income of 90 cents a share. It marked the fourth straight quarter of beating estimates.
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Wall St. Revenue Expectations: Analysts are projecting a rise of 8% in revenue from the year-earlier quarter to $931.4 million.
Stock Price Performance: Between September 25, 2012 and October 23, 2012, the stock price dropped $2.11 (-3.7%), from $56.27 to $54.16. The stock price saw one of its best stretches over the last year between September 4, 2012 and September 13, 2012, when shares rose for eight straight days, increasing 9.1% (+$4.87) over that span. It saw one of its worst periods between April 27, 2012 and May 9, 2012 when shares fell for nine straight days, dropping 6% (-$6.71) over that span.
Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.96 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term. The company regressed in this liquidity measure from 2.12 in the first quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 8.6% to $996.4 million while assets rose 0.5% to $1.95 billion.
With double-digit revenue growth the past four quarters, this earnings release is a chance to keep that positive trend going. The company has averaged year-over-year revenue growth of 13.4% over the last four quarters.
A Look Back: In the second quarter, profit fell 2.1% to $104.9 million (76 cents a share) from $107.2 million ($1.49 a share) the year earlier, but exceeded analyst expectations. Revenue rose 11.5% to $905.2 million from $812.2 million.
Analyst Ratings: There are five out of nine analysts surveyed (55.6%) rating FMC a buy.
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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)
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