Market Overview

Earnings Preview for FMC

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FMC (NYSE: FMC) announces its next round of earnings this Monday, November 02. Here is Benzinga's look at FMC's Q3 earnings report.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

FMC earnings will be near $1.11 per share on sales of $1.07 billion, according to analysts. FMC EPS in the same period a year ago totaled $0.94. Revenue was $1.01 billion.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

The analyst consensus estimate would represent a 18.09% increase in the company's EPS figure. Revenue would be up 5.52% from the same quarter last year. The company's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019
EPS Estimate 1.66 1.78 1.54 0.81
EPS Actual 1.72 1.84 1.76 0.94
Revenue Estimate 1.21 B 1.24 B 1.19 B 976.02 M
Revenue Actual 1.16 B 1.25 B 1.20 B 1.01 B

Stock Performance

Shares of FMC were trading at $103.58 as of October 29. Over the last 52-week period, shares are up 7.58%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. FMC is scheduled to hold the call at 09:00:00 ET and can be accessed here.

 

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Posted-In: Earnings