Analyst Warns FMC Dividend at Risk as Pesticide Price War Deepens
FMC is trading near its 52-week low of $4.845 (11% above the low) on elevated volume (7.7× avg).
Summary
RBC's Arun Viswanathan cut his price forecast to $9 from $11 and flagged that FMC's dividend could be the next casualty, citing limited near-term free cash flow and a balance sheet already strained by debt. The call lands a day after FMC guided Q3 revenue to just $65M-$125M with negative $565M-$510M adjusted EBITDA, absorbing $625M-$675M in charges tied to pricing and commercial changes. Shares fell another 2% premarket, extending Thursday's 30.5% plunge. The analyst still sees a possible ~$260M sequential Q4 sales rebound, but calls the scale of that recovery an execution risk with Asia-Pacific demand weak. Q3 earnings on Oct. 29 is the next hard checkpoint, and management has not signaled any dividend cut.
At the time of this announcement, FMC was trading at $5.36 on NYSE in the Life Sciences sector, with a market capitalization of approximately $874.2M. The 52-week trading range was $4.85 to $31.30. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Benzinga.