FMC Corp (FMC) Plunges 43% Pre-Market on Q3 Revenue Warning
FMC Corp shares fell 43% pre-market after slashing Q3 revenue guidance to $65M–$125M from $840M–$900M, citing weak demand. The agricultural chemicals company has an Alpha Score of 24, indicating weak fundamentals and financial distress.
Alpha Score of 24 reflects poor overall profile with poor momentum, moderate value, poor quality. Based on 3 of 4 signals – score is capped at 90 until remaining data ingests.
FMC Corp shares fell 42.9% in pre-market trading Tuesday after the agricultural chemicals company slashed its third-quarter revenue guidance to a range of $65 million to $125 million, down from $840 million to $900 million. The company also projected adjusted EBITDA of negative $510 million to negative $565 million, compared with an earlier forecast range of positive $120 million to $140 million.
FMC blamed the cuts on weaker-than-expected demand and strategic pricing changes across global markets. The company, which divested its lithium business in 2024 to focus on crop protection products, sells brands such as Rynaxypyr and Talstar to distributors and growers worldwide.
The revised numbers pushed FMC into deep financial distress territory. The company's Altman Z-Score stands at 0.6, well below the 1.8 threshold that typically flags bankruptcy risk. Debt-to-equity ratio is 2.69, and earnings per share are negative $22.04, making standard P/E valuation unworkable.
On a price-to-sales basis, FMC trades at about 0.19 times sales, far below its historical median of roughly 2.5 times. The discount reflects expectations of continued revenue decline, as evidenced by a three-year revenue growth rate of negative 15.4%. FMC's market capitalisation is about $789 million.
FMC carries an AlphaScala Alpha Score of 24 out of 100, labeled Weak, indicating below-average fundamentals relative to peers in the Basic Materials sector. According to GuruFocus data, the company's GF Score is 44 out of 100, with particular weakness in growth and momentum. The GF Value metric, which estimates intrinsic value at $35.87 per share, should be read cautiously given the company's severe losses, the publication said.
Ownership signals are mixed. Insider activity over the past 12 months shows net purchases of $500,000, with no insider sales reported, suggesting some confidence in the longer-term outlook. However, seven prominent gurus tracked by GuruFocus show a net trimming bias: six reduced positions while three added.
The company's financial strength metrics highlight elevated risk. The Altman Z-Score of 0.6 places FMC in a distress zone, signaling elevated bankruptcy risk, according to the company's latest financials. More details on FMC's financials are available on the FMC stock page.
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