What happened
Shares of agriculture stock FMC Corporation (FMC 0.69%) 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.
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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.
