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Dec 31, 2022
FMC Q4 2022 Earnings Report
FMC Corporation delivered record fourth quarter and full-year 2022 results, driven by volume and pricing gains, with a strong growth outlook for 2023.
Key Takeaways
FMC Corporation reported a 15% increase in fourth-quarter revenue, reaching $1.62 billion, driven by robust volume and strong pricing. The company's GAAP earnings per diluted share increased by 45% to $2.17, while adjusted earnings per diluted share rose by 12% to $2.37.
Revenue of $1.62 billion, an increase of 15 percent versus Q4 2021 and up 17 percent organically.
Consolidated GAAP net income of $280 million, up 52 percent versus Q4 2021.
Adjusted EBITDA of $432 million, up 17 percent versus Q4 2021.
Consolidated GAAP earnings of $2.17 per diluted share, up 45 percent versus Q4 2021.
FMC
FMC
Forward Guidance
Full-year 2023 revenue is forecasted to be in the range of $6.08 billion to $6.22 billion, representing an increase of 6 percent at the midpoint versus 2022, driven by strong pricing in all regions and growth in volume driven by new launches and market access.
Positive Outlook
- Strong pricing in all regions
- Growth in volume driven by new launches
- Growth in volume driven by market access
- Full-year adjusted EBITDA range is expected to be $1.48 billion to $1.56 billion, representing 8 percent year-over-year growth at the midpoint.
- Full-year free cash flow is expected to be $530 million to $720 million.
Challenges Ahead
- Adjusted earnings per share (EPS) is expected to be $7.20 to $8.00 per diluted share, representing an increase of 3 percent year-over-year at the midpoint, with EPS growth limited by higher interest and tax rates.
- Interest expense is now expected to be $200 million to $210 million an increase of approximately $50 million at the midpoint, reflecting the rapidly rising interest rate environment.
- Adjusted earnings per share excludes any impact from potential 2023 share repurchases and assumes weighted average diluted shares outstanding (WADSO) of approximately 126.5 million.
- First quarter revenue is expected to be in the range of $1.41 billion to $1.45 billion, a 6 percent increase at the midpoint compared to first quarter 2022.
- Adjusted earnings per diluted share is expected to be in the range of $1.63 to $1.83 in the first quarter, representing a decrease of 8 percent at the midpoint versus first quarter 2022 due to anticipated higher interest and tax rates.