Freeport-McMoRan Inc. FCX, formerly Freeport-McMoRan Copper & Gold Inc., 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.
Freeport’s copper business remains affected by the sluggish global economy and supply related issues. The difficult market conditions in Europe are still affecting copper markets. Demand from key end markets, including construction materials and electronics, still remain weak. The slowdown in China (a major market for copper) adds to the concern. However, Freeport is aggressive managing its costs and continues to progress with its expansion initiatives.
Let’s have a quick look at this mining behemoth’s third-quarter release.
Estimate Trend & Surprise History
Estimate for Freeport for the third quarter has declined by 15 cents to a loss of 8 cents from earnings of 7 cents a month ago. Freeport has beaten estimates in the last two of the four quarters while missing in the other two.
Earnings
Freeport reported adjusted loss of 15 cents per share, wider than the Zacks Consensus Estimate of a loss of 8 cents.
Revenues
Freeport posted revenues of $3,681 million, missing the Zacks Consensus Estimate of $4,085 million.
Key Stats/Developments to Note
During the quarter, Freeport took aggressive steps to boost the outlook for free cash flow generation at low commodity prices, including further reductions in capital spending, production cuts across specific mining operations and actions to trim operating, exploration and administrative costs.
For the fourth quarter of 2015, the company expects 1.1 billion pounds of copper, 310,000 ounces of gold, 21 million pounds of molybdenum and 13.3 million barrels of oil equivalent (MMBOE).
Zacks Rank
Currently, Freeport has a Zacks Rank #3 (Hold), but that could change following its earnings report which was just released.
Market Reaction
Freeport’s shares were down around 2.2% in pre-market trading. 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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