Freeport’s Q4 Earnings Lag, Revenues Beat – Tale of the Tape

Zacks

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. Sluggish growth in the U.S. and the difficult market conditions in Europe are still affecting copper markets. Due to this, investors are eagerly awaiting Freeport’s earnings report.

Estimate Trend & Surprise History

Investors should note that the earnings estimate for Freeport for the fourth quarter has been going down. However, Freeport does have a decent history when it comes to recent earnings reports as the stock has beaten estimates in the last four quarters with an average surprise of over 11%.

Earnings

Freeport misses on earnings. Our consensus called for EPS of 35 cents, and the company reported adjusted EPS of 25 cents.

Revenues

Revenues beat. Freeport posted revenues of $5,235 million, compared to our consensus estimate of $5,182 million.

Key Stats/Developments to Note

Freeport reported gold production of 368,000 ounces in the fourth quarter, down 31.5% from the year-ago quarter, while copper production amounted to 998 million pounds, down 15.4% year over year.

Zacks Rank

Currently, Freeport has a Zacks Rank #5 (Strong Sell), but that could change following Freeport’s earnings report which was just released.

Market Reaction

Freeport’s shares were down around 6.7% 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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