Please ensure Javascript is enabled for purposes of website accessibility

Why FMC Corporation Stock Jumped 14.1% Today

By Travis Hoium – Nov 3, 2021 at 4:30PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

A strong earnings report is pushing shares higher today.

What happened 

Shares of agriculture stock FMC Corporation (FMC -0.53%) jumped as much as 14.1% in late trading on Wednesday after reporting third-quarter financial results. Shares are at their daily highs at 3:20 p.m. EDT and show no sign of slowing down. 

So what

Revenue jumped 10% versus a year ago to $1.19 billion on the back of 9% organic growth. Net income rose 41.7% to $157.9 million, or $1.22 per share. On an adjusted basis, which pulls out one-time items, earnings were up 17% to $1.43 per share, beating the $1.32 that analysts were expecting. 

A large field with crops growing in single rows.

Image source: Getty Images.

Growth was seen around the world with Europe, Middle East, and Africa revenue up 12%, and Latin America revenue jumping 11%. North America was the weakest region with 6% growth, but even that's strong given the mature market. 

Now what

For the full year, management expects FMC's revenue to grow 8% versus a year ago to $4.9 billion to $5.1 billion; earnings are expected to be up 10% to $6.59 to $6.99 per share. That gives the stock a price-to-earnings ratio of less than 16, a great value for investors in today's market. Given the need to increase yields for crops, this is a well-positioned company trading at a great value, even after today's bounce in shares.  

Travis Hoium has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.