FMC Stock Tumbles on Revenue Warning Ahead of Earnings

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The crop protection company cited lower sales in Latin America as a reason for lowering estimates.

Shares of FMC were sinking in premarket trading after the crop-protection company issued a revenue warning and launched a cost structure review ahead of earnings.

FMC stock was down 16% to $56 in premarket trading. Coming into Monday’s trading session, shares have fallen 46% this year. The company—which will post third-quarter earnings on Oct. 30 after the stock market closes—said it now expects third-quarter revenue of $982 million, adjusted earnings before interest, tax, depreciation, and amortization of $175 million and adjusted earnings of 44 cents a share. The prior forecast called for a revenue range of $1.19 billion to $1.27 billion, adjusted EBITDA between $240 million and $290 million and adjusted EPS between 90 cents and $1.32 a share.

The guidance slash “is mainly driven by substantially lower sales volumes in Latin America, particularly destocking in Brazil and to a lesser degree drought in Argentina,” according to a press release.

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FMC Corp.’s stock drops on revenue warning as company launches cost structure reviewSteve Gelsi covers banking and cannabis as a Senior Reporter for MarketWatch.
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