Analyst Note| Seth Goldstein, CFA |
FMC reported solid first-quarter results. Adjusted EBITDA was up 16% year on year versus the prior-year quarter as higher prices, increased volumes, and a mix shift toward new premium products more than offset cost inflation. The results were in line with our outlook for the year. We continue to expect FMC to benefit from a mix shift toward premium-priced products as the company sees volume growth from new products launched in the past several years. Additionally, we forecast FMC will be able to raise prices across many of its products to largely offset cost inflation. With our outlook intact, we maintain our $135 per share fair value estimate for FMC. Our narrow-moat rating is also unchanged.