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Freeport-McMoRan (FCX) Down 0.7% Since Last Earnings Report: Can It Rebound?
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A month has gone by since the last earnings report for Freeport-McMoRan (FCX - Free Report) . Shares have lost about 0.7% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Freeport-McMoRan due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Freeport's Earnings and Revenues Surpass Estimates in Q2
Freeport recorded net income (attributable to common stock) of $616 million or 42 cents per share in second-quarter 2024, up around 80% from $343 million or 23 cents in the year-ago quarter.
Barring one-time items, adjusted earnings per share were 46 cents, topping the Zacks Consensus Estimate of 39 cents.
Revenues rose roughly 15% year over year to roughly $6.6 billion. The figure surpassed the Zacks Consensus Estimate of $5.99 billion. The company witnessed higher copper and gold prices in the reported quarter.
Operational Highlights
Copper production fell around 3% year over year to 1,037 million pounds in the reported quarter. The figure was ahead of our estimate of 1,030 million pounds.
Consolidated sales declined approximately 9.5% year over year, reaching 931 million pounds of copper, falling short of our estimate of 975 million pounds. This downside was mainly due to shipping delays in Indonesia, which were related to the timing of renewing PT-FI’s copper concentrate export license.
The company sold 361,000 ounces of gold, down around 27% year over year. Freeport also sold 21 million pounds of molybdenum, up around 5% year over year, in the reported quarter.
Consolidated average unit net cash costs per pound of copper were $1.73, up from $1.47 a year ago. The figure was higher than our estimate of $1.57.
The average realized copper price was $4.48 per pound, up around 17% year over year. The figure was higher than our estimate of $4.25 per pound. The average realized price per ounce for gold rose around 18% year over year to $2,299. The figure was below our estimate of $2,301.
Financial Position
Cash and cash equivalents at the end of the quarter were $5.27 billion, down around 21% year over year. The company’s total debt was $9.43 billion, down around 1% year over year.
Cash flows provided by operations were around $1.9 billion in the reported quarter, up around 17% year over year.
Guidance
Freeport expects consolidated sales volumes for 2024 to be around 4.1 billion pounds of copper, 1.8 million ounces of gold and 82 million pounds of molybdenum. This includes third-quarter estimates of 1 billion pounds of copper, 475,000 ounces of gold and 20 million pounds of molybdenum.
Consolidated copper and gold production volumes for 2024 are expected to exceed sales volumes for the year. This is due to the deferral of approximately 100 million pounds of copper and 120,000 ounces of gold, which will be processed by PT-FI’s new downstream processing facilities and sold as refined metal in 2025.
The unit net cash costs for copper are expected to average $1.63 per pound for 2024. The same has been projected at $1.71 per pound for the third quarter.
The company also sees operating cash flows of approximately $7.2 billion for 2024. Capital expenditures for the full year are projected to be around $4.7 billion.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month.
VGM Scores
At this time, Freeport-McMoRan has a nice Growth Score of B, a grade with the same score on the momentum front. Following the exact same course, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Freeport-McMoRan has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Freeport-McMoRan belongs to the Zacks Mining - Non Ferrous industry. Another stock from the same industry, Southern Copper (SCCO - Free Report) , has gained 0.1% over the past month. More than a month has passed since the company reported results for the quarter ended June 2024.
Southern Copper reported revenues of $3.12 billion in the last reported quarter, representing a year-over-year change of +35.5%. EPS of $1.22 for the same period compares with $0.70 a year ago.
For the current quarter, Southern Copper is expected to post earnings of $1.06 per share, indicating a change of +34.2% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.5% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Southern Copper. Also, the stock has a VGM Score of D.
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Freeport-McMoRan (FCX) Down 0.7% Since Last Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for Freeport-McMoRan (FCX - Free Report) . Shares have lost about 0.7% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Freeport-McMoRan due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Freeport's Earnings and Revenues Surpass Estimates in Q2
Freeport recorded net income (attributable to common stock) of $616 million or 42 cents per share in second-quarter 2024, up around 80% from $343 million or 23 cents in the year-ago quarter.
Barring one-time items, adjusted earnings per share were 46 cents, topping the Zacks Consensus Estimate of 39 cents.
Revenues rose roughly 15% year over year to roughly $6.6 billion. The figure surpassed the Zacks Consensus Estimate of $5.99 billion. The company witnessed higher copper and gold prices in the reported quarter.
Operational Highlights
Copper production fell around 3% year over year to 1,037 million pounds in the reported quarter. The figure was ahead of our estimate of 1,030 million pounds.
Consolidated sales declined approximately 9.5% year over year, reaching 931 million pounds of copper, falling short of our estimate of 975 million pounds. This downside was mainly due to shipping delays in Indonesia, which were related to the timing of renewing PT-FI’s copper concentrate export license.
The company sold 361,000 ounces of gold, down around 27% year over year. Freeport also sold 21 million pounds of molybdenum, up around 5% year over year, in the reported quarter.
Consolidated average unit net cash costs per pound of copper were $1.73, up from $1.47 a year ago. The figure was higher than our estimate of $1.57.
The average realized copper price was $4.48 per pound, up around 17% year over year. The figure was higher than our estimate of $4.25 per pound. The average realized price per ounce for gold rose around 18% year over year to $2,299. The figure was below our estimate of $2,301.
Financial Position
Cash and cash equivalents at the end of the quarter were $5.27 billion, down around 21% year over year. The company’s total debt was $9.43 billion, down around 1% year over year.
Cash flows provided by operations were around $1.9 billion in the reported quarter, up around 17% year over year.
Guidance
Freeport expects consolidated sales volumes for 2024 to be around 4.1 billion pounds of copper, 1.8 million ounces of gold and 82 million pounds of molybdenum. This includes third-quarter estimates of 1 billion pounds of copper, 475,000 ounces of gold and 20 million pounds of molybdenum.
Consolidated copper and gold production volumes for 2024 are expected to exceed sales volumes for the year. This is due to the deferral of approximately 100 million pounds of copper and 120,000 ounces of gold, which will be processed by PT-FI’s new downstream processing facilities and sold as refined metal in 2025.
The unit net cash costs for copper are expected to average $1.63 per pound for 2024. The same has been projected at $1.71 per pound for the third quarter.
The company also sees operating cash flows of approximately $7.2 billion for 2024. Capital expenditures for the full year are projected to be around $4.7 billion.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month.
VGM Scores
At this time, Freeport-McMoRan has a nice Growth Score of B, a grade with the same score on the momentum front. Following the exact same course, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Freeport-McMoRan has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Freeport-McMoRan belongs to the Zacks Mining - Non Ferrous industry. Another stock from the same industry, Southern Copper (SCCO - Free Report) , has gained 0.1% over the past month. More than a month has passed since the company reported results for the quarter ended June 2024.
Southern Copper reported revenues of $3.12 billion in the last reported quarter, representing a year-over-year change of +35.5%. EPS of $1.22 for the same period compares with $0.70 a year ago.
For the current quarter, Southern Copper is expected to post earnings of $1.06 per share, indicating a change of +34.2% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.5% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Southern Copper. Also, the stock has a VGM Score of D.