Shares of FMC plunged to a six-year low today, causing concern among investors. This marks the second time in four months that the company has revised its full-year guidance, prompting a significant drop in stock value.
The stock tumbled 25% to a low of $49.70 during early trading, experiencing its lowest level since December 2016. Year-to-date, FMC shares have fallen more than 55%, making it one of the worst-performing stocks in the market. This latest decline represents the most substantial single-day drop since the beginning of the pandemic.
FMC, an agricultural-sciences company specializing in herbicides, insecticides, and fungicides, announced before the opening bell that its fourth-quarter and full-year revenue and adjusted earnings before interest, taxes, depreciation, and amortization will be lower than previously anticipated. Furthermore, the company has also revised down its third-quarter revenue guidance and adjusted earnings outlook.
This downward revision comes as no surprise, as FMC had already reduced its guidance in July due to inventory pullbacks across several regions, including North America, Latin America, Europe, the Middle East, and Africa. However, FMC’s CEO, Mark Douglas, explained that the channel destocking in Brazil was more significant than initially expected, necessitating further adjustments. To address these challenges, FMC has initiated a restructuring process for its operations in Brazil.
Additionally, a drought in Argentina has also contributed to the downward revision, albeit to a lesser extent.
Investors and industry analysts will closely monitor FMC’s efforts to navigate these challenges and restore investor confidence.