Why FMC Stock Crashed 36% on Wednesday
FMC (NYSE: FMC) stock crashed 36.3% through 9:50 a.m. ET Wednesday after reporting mixed earnings last night. Heading into the report, analysts forecast that FMC would earn $1.60 per share in Q4, and FMC beat that number with a stick, reporting adjusted profits of $1.79 per share. However, analysts also thought FMC's sales would exceed $1.3 billion. In fact, sales were barely $1.2 billion. FMC's sales grew 12% organically, but adverse foreign exchange rates limited dollar-denominated sales growth to 7%. The news on profits was arguably worse. While adjusted profits exceeded expectations for the quarter, earnings, as calculated according to generally accepted accounting principles (GAAP), ran negative. GAAP "earnings" were a loss of $0.13 per share.Continue reading
FMC (NYSE: FMC) stock crashed 36.3% through 9:50 a.m. ET Wednesday after reporting mixed earnings last night.
Heading into the report, analysts forecast that FMC would earn $1.60 per share in Q4, and FMC beat that number with a stick, reporting adjusted profits of $1.79 per share. However, analysts also thought FMC's sales would exceed $1.3 billion. In fact, sales were barely $1.2 billion.
FMC's sales grew 12% organically, but adverse foreign exchange rates limited dollar-denominated sales growth to 7%. The news on profits was arguably worse. While adjusted profits exceeded expectations for the quarter, earnings, as calculated according to generally accepted accounting principles (GAAP), ran negative. GAAP "earnings" were a loss of $0.13 per share.
