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Southern Copper (SCCO) to Post Q2 Earnings: What to Expect?
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Southern Copper Corporation (SCCO - Free Report) is likely to register a year-over-year decline in earnings when it reports second-quarter 2022 results next week. Lower production levels and drop in copper and silver prices, and inflated costs might have weighed on the performance.
Q1 Results
In the last reported quarter, the company's earnings and sales improved year over year. SCCO beat the Zacks Consensus Estimate on both counts.
The company has surpassed earnings estimates in three of the trailing four quarters and missed once, the average surprise being 0.66%.
Southern Copper Corporation Price and EPS Surprise
The Zacks Consensus Estimate for second-quarter 2022 earnings per share is currently pegged at 97 cents, indicating a decline of 19.8% from the prior-year quarter. The estimate has moved down 10% over the past 30 days. The consensus mark for the quarter's revenues stands at $2.78 billion, suggesting a year-over-year decline of 4%.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Southern Copper this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can see the complete list of today's Zacks #1 Rank stocks here.
Earnings ESP: The Earnings ESP for Southern Copper is -4.97%. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Zacks Rank: Southern Copper currently carries a Zacks Rank #5 (Strong Sell).
Key Factors to Note
Copper accounts for more than 80% of the company's sales. Over the past few quarters, the company has been witnessing lower production at its Peruvian mines due to lower ore grades. This trend is expected to continue through 2022 and recover thereafter. On top of this, operations at its Cuajone mine in Peru had to be halted from Feb 28 amid protests by local communities. The Peruvian government declared a state of emergency in the Moquegua region on Apr 20, and water and railway connections have since been restored, and the mine is operating as usual. Thus, the suspension of operation at the beginning of the second quarter of 2022 might impact SCCO’s production numbers. Overall, silver production may have borne the impact of the stoppage at the Cuajone mine as well.
Copper prices have recently lost steam, weighed down by mounting fears of a global economic slowdown and resurgent COVID-19 outbreaks in top consumer China. Silver has lost value as well. Lower metal prices are likely to get reflected in the company's second-quarter top line.
Overall, lower production levels, the recent drop in copper and silver prices, as well as elevated costs might have impacted the company’s earnings in the to-be-reported quarter. Savings from the company's stringent cost control measures are likely to have negated some of the impacts.
Share Price Performance
Image Source: Zacks Investment Research
The company's shares have fallen 21.9% over the past year compared with the industry's decline of 23.5%.
Stocks to Consider
Here are some Basic Materials stocks which you may consider, as our model shows that these have the right combination of elements to post an earnings beat in their upcoming releases.
Albemarle Corporation (ALB - Free Report) , scheduled to release earnings on Aug 3, has an Earnings ESP of +18.98% and a Zacks Rank #2.
The Zacks Consensus Estimate for Albemarle's second-quarter earnings has been revised 10.3% upward over the past 60 days. The consensus estimate for ALB’s earnings for the quarter is currently pegged at $2.93.
Celanese Corporation (CE - Free Report) , scheduled to release earnings on Jul 28, has an Earnings ESP of +1.03% and a Zacks Rank #3.
The Zacks Consensus Estimate for Celanese’s second-quarter earnings has been revised 3.9% upward over the past 60 days. The Zacks Consensus Estimate for CE’s earnings for the quarter to be reported is currently pegged at $4.58.
FMC Corporation (FMC - Free Report) , slated to release earnings on Aug 2, has an Earnings ESP of +0.62% and a Zacks Rank #3.
The Zacks Consensus Estimate for FMC’s second-quarter earnings has been stable over the past 60 days. The consensus estimate for FMC’s earnings for the second quarter is pegged at $1.90.
Image: Bigstock
Southern Copper (SCCO) to Post Q2 Earnings: What to Expect?
Southern Copper Corporation (SCCO - Free Report) is likely to register a year-over-year decline in earnings when it reports second-quarter 2022 results next week. Lower production levels and drop in copper and silver prices, and inflated costs might have weighed on the performance.
Q1 Results
In the last reported quarter, the company's earnings and sales improved year over year. SCCO beat the Zacks Consensus Estimate on both counts.
The company has surpassed earnings estimates in three of the trailing four quarters and missed once, the average surprise being 0.66%.
Southern Copper Corporation Price and EPS Surprise
Southern Copper Corporation price-eps-surprise | Southern Copper Corporation Quote
Q2 Estimates
The Zacks Consensus Estimate for second-quarter 2022 earnings per share is currently pegged at 97 cents, indicating a decline of 19.8% from the prior-year quarter. The estimate has moved down 10% over the past 30 days. The consensus mark for the quarter's revenues stands at $2.78 billion, suggesting a year-over-year decline of 4%.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Southern Copper this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can see the complete list of today's Zacks #1 Rank stocks here.
Earnings ESP: The Earnings ESP for Southern Copper is -4.97%. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Zacks Rank: Southern Copper currently carries a Zacks Rank #5 (Strong Sell).
Key Factors to Note
Copper accounts for more than 80% of the company's sales. Over the past few quarters, the company has been witnessing lower production at its Peruvian mines due to lower ore grades. This trend is expected to continue through 2022 and recover thereafter. On top of this, operations at its Cuajone mine in Peru had to be halted from Feb 28 amid protests by local communities. The Peruvian government declared a state of emergency in the Moquegua region on Apr 20, and water and railway connections have since been restored, and the mine is operating as usual. Thus, the suspension of operation at the beginning of the second quarter of 2022 might impact SCCO’s production numbers. Overall, silver production may have borne the impact of the stoppage at the Cuajone mine as well.
Copper prices have recently lost steam, weighed down by mounting fears of a global economic slowdown and resurgent COVID-19 outbreaks in top consumer China. Silver has lost value as well. Lower metal prices are likely to get reflected in the company's second-quarter top line.
Overall, lower production levels, the recent drop in copper and silver prices, as well as elevated costs might have impacted the company’s earnings in the to-be-reported quarter. Savings from the company's stringent cost control measures are likely to have negated some of the impacts.
Share Price Performance
Image Source: Zacks Investment Research
The company's shares have fallen 21.9% over the past year compared with the industry's decline of 23.5%.
Stocks to Consider
Here are some Basic Materials stocks which you may consider, as our model shows that these have the right combination of elements to post an earnings beat in their upcoming releases.
Albemarle Corporation (ALB - Free Report) , scheduled to release earnings on Aug 3, has an Earnings ESP of +18.98% and a Zacks Rank #2.
The Zacks Consensus Estimate for Albemarle's second-quarter earnings has been revised 10.3% upward over the past 60 days. The consensus estimate for ALB’s earnings for the quarter is currently pegged at $2.93.
Celanese Corporation (CE - Free Report) , scheduled to release earnings on Jul 28, has an Earnings ESP of +1.03% and a Zacks Rank #3.
The Zacks Consensus Estimate for Celanese’s second-quarter earnings has been revised 3.9% upward over the past 60 days. The Zacks Consensus Estimate for CE’s earnings for the quarter to be reported is currently pegged at $4.58.
FMC Corporation (FMC - Free Report) , slated to release earnings on Aug 2, has an Earnings ESP of +0.62% and a Zacks Rank #3.
The Zacks Consensus Estimate for FMC’s second-quarter earnings has been stable over the past 60 days. The consensus estimate for FMC’s earnings for the second quarter is pegged at $1.90.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.