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Dec 31, 2023
FMC Q4 2023 Earnings Report
FMC's Q4 2023 results were announced, showing a revenue decrease due to destocking, but GAAP net income increased significantly due to tax benefits.
Key Takeaways
FMC Corporation reported a decrease in revenue for Q4 2023, driven by continued channel destocking and adverse weather in Latin America. However, GAAP net income and earnings per share increased significantly due to one-time tax benefits.
Revenue decreased by 29% compared to Q4 2022, reaching $1.15 billion.
GAAP net income increased by 291% to $1.10 billion due to significant one-time tax benefits.
Adjusted earnings per diluted share decreased by 55% to $1.07.
New product introductions accounted for 14% of sales in the quarter.
Forward Guidance
FMC expects revenue between $4.50 and $4.70 billion, adjusted EBITDA between $900 million and $1.05 billion, and adjusted EPS between $3.23 and $4.41 for the full year 2024. Free cash flow is expected to be in the range of $400 to $600 million.
Positive Outlook
- Revenue growth driven by new products, primarily in the second half.
- Adjusted EBITDA is expected to be essentially flat to prior year at the midpoint.
- Restructuring is fully underway and expect to receive $50 to $75 million of adjusted EBITDA benefit.
- Adjusted EPS is expected to increase by 1 percent year-over-year at the midpoint.
- Free cash flow is expected to increase significantly due to rebuilding of payables and lower inventory.
Challenges Ahead
- Crop protection market is expected to be flat-to-down low-single digits.
- Headwinds to adjusted EBITDA in the first half are expected from continued destocking.
- Higher inventory costs are expected to impact adjusted EBITDA in the first half.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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