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Freeport's (FCX) Earnings and Sales Miss Estimates in Q2
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Freeport-McMoRan Inc. (FCX - Free Report) recorded net income (attributable to common stock) of $840 million or 57 cents per share in second-quarter 2022, down from $1,083 million or 73 cents in the year-ago quarter.
Barring one-time items, adjusted earnings per share came in at 58 cents, missing the Zacks Consensus Estimate of 76 cents.
Revenues declined roughly 5.8% year over year to $5,416 million. The figure missed the Zacks Consensus Estimate of $6,407.8 million.
FreeportMcMoRan Inc. Price, Consensus and EPS Surprise
Copper production rose 17.7% year over year to 1,075 million pounds in the second quarter.
Consolidated sales from mines rose 17% year over year to 1,087 million pounds of copper. The company sold 476,000 ounces of gold and 20 million pounds of molybdenum during the quarter.
Consolidated average unit net cash costs per pound of copper were $1.41, down about 4.7% year over year. The downside was caused by higher sales volume and by-product credits.
The average realized price for copper was $4.03 per pound, down roughly 7.1% year over year. The average realized price per ounce for gold increased around 1.8% year over year to $1,827. The average realized price per pound for molybdenum was $19.44, up around 48.3% year over year.
Financial Position
Cash and cash equivalents at the end of the second quarter were $9,492 million, up 17.6% year over year. The company’s long-term debt was $10,054 million, up around 10.8% year over year.
Cash flows provided by operations were $3,312 million for the six months ended Jun 30, 2022.
Guidance
For 2022, Freeport anticipates consolidated sales volumes to be roughly 4.2 billion pounds of copper.
The company also expects gold sales volumes of 1.7 million ounces for 2022. It also expects sales of 80 million pounds of molybdenum for the year.
For the third quarter of 2022, Freeport expects sales volumes to be 1 billion pounds of copper, 400,000 ounces of gold and 21 million pounds of molybdenum.
Price Performance
Freeport’s shares have dropped 17.9% in the past year compared with a 24.3% decline of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Freeport currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are Albemarle Corporation (ALB - Free Report) , Cabot Corporation (CBT - Free Report) and Sociedad Quimica y Minera de Chile S.A. (SQM - Free Report) .
Albemarle has a projected earnings growth rate of 239.1% for the current year. The Zacks Consensus Estimate for ALB's current-year earnings has been revised 20.5% upward in the past 60 days.
Albemarle’s earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 22.5%, on average. ALB has gained around 13.9% in a year and currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Cabot, currently sporting a Zacks Rank #1 (Strong Buy), has an expected earnings growth rate of 22.5% for the current year. The Zacks Consensus Estimate for CBT's earnings for the current year has been revised 6% upward in the past 60 days.
Cabot’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 16.2%. CBT has gained around 32% over a year.
Sociedad has a projected earnings growth rate of 422.4% for the current year. The Zacks Consensus Estimate for SQM’s current-year earnings has been revised 75.3% upward in the past 60 days.
Sociedad’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters, the average being 28.2%. SQM has gained 77.4% in a year. The company sports a Zacks Rank #1.
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Freeport's (FCX) Earnings and Sales Miss Estimates in Q2
Freeport-McMoRan Inc. (FCX - Free Report) recorded net income (attributable to common stock) of $840 million or 57 cents per share in second-quarter 2022, down from $1,083 million or 73 cents in the year-ago quarter.
Barring one-time items, adjusted earnings per share came in at 58 cents, missing the Zacks Consensus Estimate of 76 cents.
Revenues declined roughly 5.8% year over year to $5,416 million. The figure missed the Zacks Consensus Estimate of $6,407.8 million.
FreeportMcMoRan Inc. Price, Consensus and EPS Surprise
FreeportMcMoRan Inc. price-consensus-eps-surprise-chart | FreeportMcMoRan Inc. Quote
Operational Update
Copper production rose 17.7% year over year to 1,075 million pounds in the second quarter.
Consolidated sales from mines rose 17% year over year to 1,087 million pounds of copper. The company sold 476,000 ounces of gold and 20 million pounds of molybdenum during the quarter.
Consolidated average unit net cash costs per pound of copper were $1.41, down about 4.7% year over year. The downside was caused by higher sales volume and by-product credits.
The average realized price for copper was $4.03 per pound, down roughly 7.1% year over year. The average realized price per ounce for gold increased around 1.8% year over year to $1,827. The average realized price per pound for molybdenum was $19.44, up around 48.3% year over year.
Financial Position
Cash and cash equivalents at the end of the second quarter were $9,492 million, up 17.6% year over year. The company’s long-term debt was $10,054 million, up around 10.8% year over year.
Cash flows provided by operations were $3,312 million for the six months ended Jun 30, 2022.
Guidance
For 2022, Freeport anticipates consolidated sales volumes to be roughly 4.2 billion pounds of copper.
The company also expects gold sales volumes of 1.7 million ounces for 2022. It also expects sales of 80 million pounds of molybdenum for the year.
For the third quarter of 2022, Freeport expects sales volumes to be 1 billion pounds of copper, 400,000 ounces of gold and 21 million pounds of molybdenum.
Price Performance
Freeport’s shares have dropped 17.9% in the past year compared with a 24.3% decline of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Freeport currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are Albemarle Corporation (ALB - Free Report) , Cabot Corporation (CBT - Free Report) and Sociedad Quimica y Minera de Chile S.A. (SQM - Free Report) .
Albemarle has a projected earnings growth rate of 239.1% for the current year. The Zacks Consensus Estimate for ALB's current-year earnings has been revised 20.5% upward in the past 60 days.
Albemarle’s earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 22.5%, on average. ALB has gained around 13.9% in a year and currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Cabot, currently sporting a Zacks Rank #1 (Strong Buy), has an expected earnings growth rate of 22.5% for the current year. The Zacks Consensus Estimate for CBT's earnings for the current year has been revised 6% upward in the past 60 days.
Cabot’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 16.2%. CBT has gained around 32% over a year.
Sociedad has a projected earnings growth rate of 422.4% for the current year. The Zacks Consensus Estimate for SQM’s current-year earnings has been revised 75.3% upward in the past 60 days.
Sociedad’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters, the average being 28.2%. SQM has gained 77.4% in a year. The company sports a Zacks Rank #1.