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 recent slowdown in China (a major market for copper) adds to the concern. 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 first quarter 2015 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 three of the four quarters with an average surprise of 3.14%.
Earnings
Freeport’s loss was wider than the Zacks Consensus estimate. Our consensus called for loss per share of 4 cents, and the company reported adjusted loss of 6 cents.
Revenues
Freeport posted revenues of $4,153 million, ahead of our consensus estimate of $4,019 million.
Key Stats/Developments to Note
Freeport reported gold production of 259,000 ounces in the first quarter, up 12.1% from the year-ago quarter, while copper production amounted to 915 million pounds, down 3.5% year over year.
Zacks Rank
Currently, Freeport has a Zacks Rank #3 (Hold), but that could change following Freeport’s earnings report which was just released.
Market Reaction
Freeport’s shares were down around 2% 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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