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What's in Store for Southern Copper (SCCO) in Q3 Earnings?
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Southern Copper Corporation (SCCO - Free Report) is likely to register a year-over-year decline in earnings in its third-quarter 2022 results next week. Lower production levels and a drop in copper and silver prices, as well as inflated costs might have weighed on the performance.
Q2 Results
In the last reported quarter, the company's earnings and sales declined year over year. SCCO also missed the Zacks Consensus Estimate on both counts.
The company surpassed earnings estimates in two of the trailing four quarters, missed in one, while came up with in-line results in the other, resulting in a negative average surprise of 10.91%.
Southern Copper Corporation Price and EPS Surprise
The Zacks Consensus Estimate for third-quarter 2022 earnings per share is currently pegged at 56 cents, indicating a decline of 50% from the prior-year quarter. The estimate has moved down 10% over the past 30 days. The consensus mark for the quarter's revenues stands at $2.37 billion, suggesting a year-over-year decline of 11.6%.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Southern Copper this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can see the complete list of today's Zacks #1 Rank stocks here.
Earnings ESP: The Earnings ESP for Southern Copper is -0.89%. You can uncover the best stocks before they're reported with our Earnings ESP Filter.
Zacks Rank: Southern Copper currently carries a Zacks Rank #3.
Key Factors
Copper accounts for more than 80% of the company's sales. Over the past few quarters, SCCO has been witnessing lower production at its Peruvian mines due to lower ore grades. This trend is expected to continue through 2022 and the third quarter is unlikely to have been an exception.Copper prices were on a downtrend in the third quarter, weighed down by mounting fears of a global economic slowdown and resurgent COVID outbreaks in top consumer China.
Silver prices have also been negatively impacted this year, weighed down by the stronger U.S. dollar, rising interest rates and sluggish growth. SCCO has also been facing higher costs for diesel and fuel, operating and repair materials, supplies, and energy, as well as higher labor costs.
Overall, lower production levels, lower copper and silver prices, as well as elevated costs might have impacted the company’s earnings in the to-be-reported quarter. Savings from the company's stringent cost control measures are likely to have negated some of the impacts.
Share Price Performance
Image Source: Zacks Investment Research
The company's shares have fallen 28.4% over the past year compared with the industry's decline of 28.5%.
Stocks to Consider
Here are some Basic Materials stocks, which, according to, our model, have the right combination of elements to post an earnings beat in their upcoming releases.
Albemarle Corporation (ALB - Free Report) , scheduled to release earnings on Nov 2, has an Earnings ESP of +8.13% and sports a Zacks Rank #1.
The consensus estimate for Albemarle’s third-quarter earnings has been revised 9% upward in the past 60 days. The Zacks Consensus Estimate for ALB’s earnings for the quarter is pegged at $6.81.
Koppers Holdings Inc. (KOP - Free Report) , expected to release earnings on Nov 3, has an Earnings ESP of +2.28% and carries a Zacks Rank #2.
The Zacks Consensus Estimate for Koppers’ third-quarter earnings has been revised 2.6% upward in the past 60 days. The consensus estimate for KOP’s earnings for the quarter is currently pegged at $1.17.
FMC Corporation (FMC - Free Report) , scheduled to release earnings on Nov 1, has an Earnings ESP of +0.30%.
The Zacks Consensus Estimate for FMC's earnings for the third quarter is currently pegged at $1.11. FMC currently carries a Zacks Rank #3.
Image: Bigstock
What's in Store for Southern Copper (SCCO) in Q3 Earnings?
Southern Copper Corporation (SCCO - Free Report) is likely to register a year-over-year decline in earnings in its third-quarter 2022 results next week. Lower production levels and a drop in copper and silver prices, as well as inflated costs might have weighed on the performance.
Q2 Results
In the last reported quarter, the company's earnings and sales declined year over year. SCCO also missed the Zacks Consensus Estimate on both counts.
The company surpassed earnings estimates in two of the trailing four quarters, missed in one, while came up with in-line results in the other, resulting in a negative average surprise of 10.91%.
Southern Copper Corporation Price and EPS Surprise
Southern Copper Corporation price-eps-surprise | Southern Copper Corporation Quote
Q3 Estimates
The Zacks Consensus Estimate for third-quarter 2022 earnings per share is currently pegged at 56 cents, indicating a decline of 50% from the prior-year quarter. The estimate has moved down 10% over the past 30 days. The consensus mark for the quarter's revenues stands at $2.37 billion, suggesting a year-over-year decline of 11.6%.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Southern Copper this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can see the complete list of today's Zacks #1 Rank stocks here.
Earnings ESP: The Earnings ESP for Southern Copper is -0.89%. You can uncover the best stocks before they're reported with our Earnings ESP Filter.
Zacks Rank: Southern Copper currently carries a Zacks Rank #3.
Key Factors
Copper accounts for more than 80% of the company's sales. Over the past few quarters, SCCO has been witnessing lower production at its Peruvian mines due to lower ore grades. This trend is expected to continue through 2022 and the third quarter is unlikely to have been an exception.Copper prices were on a downtrend in the third quarter, weighed down by mounting fears of a global economic slowdown and resurgent COVID outbreaks in top consumer China.
Silver prices have also been negatively impacted this year, weighed down by the stronger U.S. dollar, rising interest rates and sluggish growth. SCCO has also been facing higher costs for diesel and fuel, operating and repair materials, supplies, and energy, as well as higher labor costs.
Overall, lower production levels, lower copper and silver prices, as well as elevated costs might have impacted the company’s earnings in the to-be-reported quarter. Savings from the company's stringent cost control measures are likely to have negated some of the impacts.
Share Price Performance
Image Source: Zacks Investment Research
The company's shares have fallen 28.4% over the past year compared with the industry's decline of 28.5%.
Stocks to Consider
Here are some Basic Materials stocks, which, according to, our model, have the right combination of elements to post an earnings beat in their upcoming releases.
Albemarle Corporation (ALB - Free Report) , scheduled to release earnings on Nov 2, has an Earnings ESP of +8.13% and sports a Zacks Rank #1.
The consensus estimate for Albemarle’s third-quarter earnings has been revised 9% upward in the past 60 days. The Zacks Consensus Estimate for ALB’s earnings for the quarter is pegged at $6.81.
Koppers Holdings Inc. (KOP - Free Report) , expected to release earnings on Nov 3, has an Earnings ESP of +2.28% and carries a Zacks Rank #2.
The Zacks Consensus Estimate for Koppers’ third-quarter earnings has been revised 2.6% upward in the past 60 days. The consensus estimate for KOP’s earnings for the quarter is currently pegged at $1.17.
FMC Corporation (FMC - Free Report) , scheduled to release earnings on Nov 1, has an Earnings ESP of +0.30%.
The Zacks Consensus Estimate for FMC's earnings for the third quarter is currently pegged at $1.11. FMC currently carries a Zacks Rank #3.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.