FMC Corp (NYSE:FMC) has broken out from an ascending triangle pattern, driven higher by a better earnings report as well as an analyst upgrade.
The stock closed Friday at $52.46, up 3%, on volume of 7.70 million shares, nearly 9X its average volume of 0.88 million shares.
A diversified chemical company operating in the agricultural, consumer and industrial sectors, FMC has, over the past two trading sessions, broken out from an ascending triangle pattern that has been forming since July.
FMC Corp (NYSE:FMC) upgraded
FMC was upgraded Friday by analysts at Credit Suisse from Neutral to Outperform and upped their price target from $48 to $57.
The analysts cited improving fundamentals from “enhanced distribution channels, dynamic pricing models and upside from lithium” that would outweigh agricultural headwinds prevailing in 2016. “Any pullback in FMC shares will be an attractive buying opportunity, especially if emerging market agriculture improves,” said Credit Suisse analyst C. Parkinson, who raised his estimates for ‘16/’17 EPS to $2.83 (from $2.75) / $3.45 (from $3.20).
FMC Corp (NYSE:FMC) beats in the third quarter
For the third quarter, FMC reported EPS of $0.67, which beat by $0.08, and revenue of $808 million, which beat by $12.43 million but was down 2.7%.
Pierre Brondeau, FMC president, CEO and chairman said: “FMC delivered another strong quarter, reporting adjusted earnings per share above the top end of guidance.”
He attributed the performance to solid performance from the agricultural solutions division, particularly in Latin America, as well as the lithium business which benefited from the company’s strategy to focus on higher value downstream specialty products.
FMC Corp (NYSE:FMC) full year guidance
FMC increased its cash flow guidance for the full year from a range of $450 million to $550 million to a range of $550 million to $600 million.
On a mid-point-to-mid-point comparison the revised guidance reflects an increase in cash generation of almost 60% compared to 2015.
Full year adjusted EPS is estimated in the range of $2.76 to $2.86.