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Freeport's (FCX) Earnings and Revenues Lag Estimates in Q3
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Freeport-McMoRan Inc. (FCX - Free Report) recorded net income (attributable to common stock) of $404 million or 28 cents per share in third-quarter 2022, down from $1,399 million or 94 cents in the year-ago quarter.
Barring one-time items, adjusted earnings per share came in at 26 cents, missing the Zacks Consensus Estimate of 34 cents.
Revenues declined roughly 18% year over year to $5,003 million. The figure also missed the Zacks Consensus Estimate of $5,197.9 million. The results were hurt by lower copper and gold prices.
FreeportMcMoRan Inc. Price, Consensus and EPS Surprise
Copper production rose roughly 7% year over year to 1,056 million pounds in the reported quarter.
Consolidated sales rose 3% year over year to 1,060 million pounds of copper. The company sold 480,000 ounces of gold and 17 million pounds of molybdenum during the quarter.
Consolidated average unit net cash costs per pound of copper were $1.75, up around 41% year over year. The upside was caused by increased energy prices and higher costs for other consumables such as sulfuric acid, explosives, key equipment parts and other supplies and services.
The average realized price for copper was $3.50 per pound, down roughly 17% year over year. The average realized price per ounce for gold declined around 4% year over year to $1,683. The average realized price per pound for molybdenum was $17.05, down around 8% year over year.
Financial Position
Cash and cash equivalents at the end of the third quarter were $8,578 million, up around 12% year over year. The company’s long-term debt was $9,658 million, flat year over year.
Cash flows provided by operations were $4,070 million for the nine months ended Sep 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 1.8 million ounces for 2022. It also expects sales of 76 million pounds of molybdenum for the year.
For the fourth quarter of 2022, Freeport expects sales volumes to be 1 billion pounds of copper, 420,000 ounces of gold and 20 million pounds of molybdenum.
Price Performance
Freeport’s shares have dropped 27.1% in the past year compared with a 28.4% decline of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Other Key Picks
Freeport currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks worth considering in the basic materials space include Albemarle Corporation (ALB - Free Report) , Sociedad Quimica y Minera de Chile S.A. (SQM - Free Report) and Ryerson Holding Corporation (RYI - Free Report) .
Albemarle, currently sporting a Zacks Rank #1 (Strong Buy), has a projected earnings growth rate of 426.7% for the current year. The Zacks Consensus Estimate for ALB's current-year earnings has been revised 5% upward in the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
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 24.2%, on average. ALB has gained around 10% in a year.
Sociedad has a projected earnings growth rate of 530.7% for the current year. The Zacks Consensus Estimate for SQM’s current-year earnings has been revised 2.1% upward in the past 60 days.
Sociedad has a trailing four-quarter earnings surprise of roughly 27.2%. SQM has rallied roughly 69% in a year. The company currently carries a Zacks Rank #1.
Ryerson Holding, currently carrying a Zacks Rank #2 (Buy), has an expected earnings growth rate of 74.2% for the current year. The consensus estimate for RYI's earnings for the current year has been revised 3.2% upward in the past 60 days.
Ryerson Holding’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 28.9%. RYI has gained around 23% over a year.
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Freeport's (FCX) Earnings and Revenues Lag Estimates in Q3
Freeport-McMoRan Inc. (FCX - Free Report) recorded net income (attributable to common stock) of $404 million or 28 cents per share in third-quarter 2022, down from $1,399 million or 94 cents in the year-ago quarter.
Barring one-time items, adjusted earnings per share came in at 26 cents, missing the Zacks Consensus Estimate of 34 cents.
Revenues declined roughly 18% year over year to $5,003 million. The figure also missed the Zacks Consensus Estimate of $5,197.9 million. The results were hurt by lower copper and gold prices.
FreeportMcMoRan Inc. Price, Consensus and EPS Surprise
FreeportMcMoRan Inc. price-consensus-eps-surprise-chart | FreeportMcMoRan Inc. Quote
Operational Update
Copper production rose roughly 7% year over year to 1,056 million pounds in the reported quarter.
Consolidated sales rose 3% year over year to 1,060 million pounds of copper. The company sold 480,000 ounces of gold and 17 million pounds of molybdenum during the quarter.
Consolidated average unit net cash costs per pound of copper were $1.75, up around 41% year over year. The upside was caused by increased energy prices and higher costs for other consumables such as sulfuric acid, explosives, key equipment parts and other supplies and services.
The average realized price for copper was $3.50 per pound, down roughly 17% year over year. The average realized price per ounce for gold declined around 4% year over year to $1,683. The average realized price per pound for molybdenum was $17.05, down around 8% year over year.
Financial Position
Cash and cash equivalents at the end of the third quarter were $8,578 million, up around 12% year over year. The company’s long-term debt was $9,658 million, flat year over year.
Cash flows provided by operations were $4,070 million for the nine months ended Sep 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 1.8 million ounces for 2022. It also expects sales of 76 million pounds of molybdenum for the year.
For the fourth quarter of 2022, Freeport expects sales volumes to be 1 billion pounds of copper, 420,000 ounces of gold and 20 million pounds of molybdenum.
Price Performance
Freeport’s shares have dropped 27.1% in the past year compared with a 28.4% decline of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Other Key Picks
Freeport currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks worth considering in the basic materials space include Albemarle Corporation (ALB - Free Report) , Sociedad Quimica y Minera de Chile S.A. (SQM - Free Report) and Ryerson Holding Corporation (RYI - Free Report) .
Albemarle, currently sporting a Zacks Rank #1 (Strong Buy), has a projected earnings growth rate of 426.7% for the current year. The Zacks Consensus Estimate for ALB's current-year earnings has been revised 5% upward in the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
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 24.2%, on average. ALB has gained around 10% in a year.
Sociedad has a projected earnings growth rate of 530.7% for the current year. The Zacks Consensus Estimate for SQM’s current-year earnings has been revised 2.1% upward in the past 60 days.
Sociedad has a trailing four-quarter earnings surprise of roughly 27.2%. SQM has rallied roughly 69% in a year. The company currently carries a Zacks Rank #1.
Ryerson Holding, currently carrying a Zacks Rank #2 (Buy), has an expected earnings growth rate of 74.2% for the current year. The consensus estimate for RYI's earnings for the current year has been revised 3.2% upward in the past 60 days.
Ryerson Holding’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 28.9%. RYI has gained around 23% over a year.