Gold prices set for weekly drop as strong dollar weighs; Trump tariffs in focus
Investing.com -- Shares of FMC Corp . (NYSE: NYSE:FMC) tumbled 32% as the market responded to the company’s disappointing forward-looking statements and a slew of analyst downgrades. Despite surpassing Q4 earnings per share (EPS) expectations, FMC’s revenue fell short of consensus estimates, and the company’s guidance for the upcoming fiscal year did not meet analyst projections.
FMC Corp. reported a fourth-quarter EPS of $1.79, outperforming the analyst estimate of $1.63. However, revenue for the quarter was reported at $1.22 billion, which did not reach the expected $1.34 billion. The company’s full-year 2025 EPS outlook of $3.26 to $3.70 is notably below the consensus of $4.36, and the revenue forecast of $4.15 to $4.35 billion also falls short of the expected $4.4 billion.
The company’s revenue for the fourth quarter marked a 7% increase compared to the same period last year, but this was overshadowed by a significant 101% decrease in GAAP net loss. For the full year, FMC’s revenue decreased by 5%, and its GAAP net income plummeted by 74% compared to the previous year.
Analysts have reacted to FMC’s guidance with concern. RBC Capital’s Arun Viswanathan downgraded the stock from Outperform to Sector Perform and significantly cut the price target, stating, "In FY25, we expect volume headwinds to persist, and continued destocking is likely to weigh on margins from fixed cost absorption. Pricing and FX are also headwinds, and we expect continued economic weakness to result in a prolonged period of earnings weakness for FMC."
Similarly, Morgan Stanley (NYSE:MS)’s Vincent Andrews, who maintained an Equalweight rating, lowered the price target and emphasized the need for FMC to demonstrate its ability to meet 2025 EBITDA guidance and provide clarity on inventory levels and competition.
BofA Securities analyst Steve Byrne, who downgraded FMC Corp. from Neutral to Underperform, expressed concerns about the full-year guidance, competitive pressures, and the company’s leverage and dividend sustainability.
The downgrades and revised price targets reflect the broader skepticism among analysts regarding FMC’s ability to navigate inventory management challenges, pricing pressures, and increased competition in the coming year.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.