FMC Earnings Cheat Sheet: Fifth straight Quarter of Expanding Margins, Net Income Climbs
S&P 500 (NYSE:SPY) component FMC Corporation (NYSE:FMC) reported its results for the second quarter. FMC Corp., a chemical manufacturing company, offers innovative solutions, applications and products to agricultural, consumer and industrial markets around the world. .
FMC Earnings Cheat Sheet for the Second Quarter
Results: Net income for FMC Corporation rose to $107.2 million ($1.49 per share) vs. $65.7 million (90 cents per share) in the same quarter a year earlier. This marks a rise of 63.2% from the year earlier quarter.
Revenue: Rose 4.6% to $812.2 million from the year earlier quarter.
Actual vs. Wall St. Expectations: FMC reported adjusted net income of $1.53 per share. By that measure, the company beat the mean estimate of $1.51 per share. Analysts were expecting revenue of $811.5 million.
Quoting Management: Pierre Brondeau, FMC president, chief executive officer and chairman, said, “We delivered another strong quarter as each operating segment achieved double-digit earnings growth. Demand across our businesses and diverse end markets remains very healthy, particularly in rapidly-developing economies. We continue to see rich opportunities for organic growth across our businesses and intend to step up investments in certain growth capital projects. “We also continue to make good progress advancing our external growth initiatives with the announcements of an agrochemical joint venture in Argentina that enhances our growth and market access in Latin America’s second largest crop protection market and a peroxygens acquisition in Europe that accelerates the globalization of our specialty peroxygens business.
Last quarter marked the fifth consecutive quarter of gross margins expanding as the company’s gross margin expanded 2.7 percentage points to 36.8% from the year earlier quarter. Over that span, margins have grown on average 2.5 percentage points per quarter on a year-over-year basis.
The company has now topped analyst estimates for the last four quarters. It beat the mark by 5 cents in the first quarter, by 4 cents in the fourth quarter of the last fiscal year, and by 3 cents in the third quarter of the last fiscal year.
Revenue has risen the past four quarters. Revenue increased 5.1% to $795 million in the first quarter. The figure rose 12.2% in the fourth quarter of the last fiscal year from the year earlier and climbed 8.3% in the third quarter of the last fiscal year from the year-ago quarter.
Competitors to Watch: E.I. du Pont de Nemours & Co. (NYSE:DD), The Dow Chemical Company (NYSE:DOW), Eastman Chemical Company (NYSE:EMN), Rockwood Holdings, Inc. (NYSE:ROC), PPG Industries, Inc. (NYSE:PPG), Ashland Inc. (NYSE:ASH), Monsanto Company (NYSE:MON), Sociedad Quimica y Minera (NYSE:SQM), and Minerals Technologies Inc (NYSE:MTX).
(Source: Xignite Financials)