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Freeport (FCX) Q1 Earnings Miss, Revenues Beat Estimates

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Freeport-McMoRan Inc. (FCX - Free Report) is a mining giant that is primarily engaged in mineral exploration and development, mining and milling of copper, gold, molybdenum and silver, as well as the smelting and refining of copper concentrates.

Earnings

Freeport reported adjusted earnings of 46 cents per share for the first quarter that missed the Zacks Consensus Estimate of 58 cents.

Revenues

Freeport posted revenues of $4,868 million, which beat the Zacks Consensus Estimate of $4,759.9 million.

Estimate Trend & Surprise History

Investors should note that the Zacks Consensus Estimate for Freeport for the first quarter have been going down over the past month. The company has missed the Zacks Consensus Estimate in two of the trailing four quarters, while beating in the other two, with an average negative surprise of 1.4%.

Key Stats/Developments to Note

Freeport anticipates consolidated sales volumes for 2018 to be roughly 3.8 billion pounds of copper, 2.4 million ounces of gold and 95 million pounds of molybdenum, including 970 million pounds of copper, 700,000 ounces of gold and 24 million pounds of molybdenum for second-quarter 2018.

For 2018, the company expects operating cash flows to be roughly $5.6 billion (including $0.2 billion in working capital and other tax payments). Capital expenditures are expected to be around $2 billion, which includes $1.1 billion for major mining projects mainly related to underground development in the Grasberg and the Lone Star oxide project.

Freeport had no borrowings, $13 million in letter of credit issued and $3.5 billion available under its revolving credit facility as of Mar 31, 2018.  

Zacks Rank

Currently, Freeport has a Zacks Rank #3 (Hold), but that could change following the company’s earnings report which was just released.

Market Reaction

Freeport’s shares were down roughly 2.6% in the pre-market trading following the release. It would be interesting to see how the market reacts to the results during the trading session today.

Check back later for our full write up on Freeport’s earnings report!

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