FMC Corp’s (NYSE:FMC) shares dropped more than 12% intra-day today after the company reduced its third-quarter adjusted earnings per share forecast. The primary reason for this revised projection is decreased sales volumes in Latin America.
FMC Corp is also undergoing an immediate restructuring in Brazil and a comprehensive review of the company’s cost structure. The company anticipates the current stock reduction conditions to persist and also highlights drought issues in Argentina as a contributing factor to the revised outlook.
The new adjusted EPS estimate is set at 44 cents, a significant drop from the earlier range of 90 cents to $1.32, and well below the Street estimate of $1.02.
The company’s anticipated revenue is now around $982 million, which contrasts sharply with the original estimate of between $1.19 billion and $1.27 billion, and the Street estimate of $1.2 billion.
For the entire year, FMC Corp now projects its revenue to be between $4.48 billion and $4.72 billion, as opposed to its initial forecast of $5.20 billion to $5.40 billion, with the consensus at $5.22 billion. The annual adjusted EBITDA is also revised and is expected to be between $970 million and $1.03 billion, a decrease from the first prediction of $1.30 billion to $1.40 billion. This is below the analyst’s expectation of $1.31 billion.