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Freeport-McMoRan (FCX) Down 2% Since Last Earnings Report: Can It Rebound?
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It has been about a month since the last earnings report for Freeport-McMoRan (FCX - Free Report) . Shares have lost about 2% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Freeport-McMoRan due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Freeport's Earnings and Revenues Surpass Estimates in Q4
Freeport recorded net income (attributable to common stock) of $388 million or 27 cents per share in fourth-quarter 2023, down around 44.3% from $697 million or 48 cents in the year-ago quarter.
Barring one-time items, adjusted earnings per share came in at 27 cents, topping the Zacks Consensus Estimate of 21 cents.
Revenues rose nearly 2.6% year over year to around $5.9 billion. The figure also surpassed the Zacks Consensus Estimate of $5.82 billion. The company witnessed higher copper sales in the reported quarter.
Operational Highlights
Copper production rose nearly 2.3% year over year to 1,095 million pounds in the reported quarter. The figure fell short of our estimate of 1,108 million pounds.
Consolidated sales increased around 7.1% year over year to 1,116 million pounds of copper. The figure was higher than our estimate of 1,085 million pounds. The upside can be attributed to higher mining rates.
The company sold 549,000 ounces of gold, up around 16.3% year over year. The figure was lower than our estimate of 580,000 ounces. Freeport also sold 22 million pounds of molybdenum, up around 15.8% year over year during the quarter. The figure was higher than our estimate of 20 million pounds.
Consolidated average unit net cash costs per pound of copper were $1.52, flat year over year. The figure was lower than our estimate of $1.58.
The average realized price for copper was $3.81 per pound, up around 1% year over year. The figure was higher than our estimate of $3.6 per pound. The average realized price per ounce for gold rose around 13.7% year over year to $2,034. The figure was above our estimate of $1,900.
Financial Position
Cash and cash equivalents (including restricted) at the end of the quarter were $5.97 billion, down around 27.8% year over year. The company’s long-term debt was $8.66 billion, down around 9.7% year over year.
Cash flows provided by operations were $5.28 billion for the year ended Dec 31, 2023.
Guidance
Freeport expects consolidated sales for the year 2024 to be approximately 4.1 billion pounds of copper, 2 million ounces of gold and 85 million pounds of molybdenum. This includes an estimated 1 billion pounds of copper, 575,000 ounces of gold, and 20 million pounds of molybdenum in the first quarter of 2024.
The unit net cash costs for copper are expected to average $1.60 per pound for 2024, encompassing $1.55 per pound in the first quarter of the same year. These predictions are based on the achievement of current sales volume and cost estimates, assuming average prices of $2,000 per ounce of gold and $19.00 per pound of molybdenum for the entire year.
The company is also forecasting operating cash flows of approximately $5.8 billion for 2024. Meanwhile, capital expenditures for the full year are projected to be around $4.6 billion.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
The consensus estimate has shifted -6.84% due to these changes.
VGM Scores
At this time, Freeport-McMoRan has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Freeport-McMoRan has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Freeport-McMoRan (FCX) Down 2% Since Last Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for Freeport-McMoRan (FCX - Free Report) . Shares have lost about 2% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Freeport-McMoRan due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Freeport's Earnings and Revenues Surpass Estimates in Q4
Freeport recorded net income (attributable to common stock) of $388 million or 27 cents per share in fourth-quarter 2023, down around 44.3% from $697 million or 48 cents in the year-ago quarter.
Barring one-time items, adjusted earnings per share came in at 27 cents, topping the Zacks Consensus Estimate of 21 cents.
Revenues rose nearly 2.6% year over year to around $5.9 billion. The figure also surpassed the Zacks Consensus Estimate of $5.82 billion. The company witnessed higher copper sales in the reported quarter.
Operational Highlights
Copper production rose nearly 2.3% year over year to 1,095 million pounds in the reported quarter. The figure fell short of our estimate of 1,108 million pounds.
Consolidated sales increased around 7.1% year over year to 1,116 million pounds of copper. The figure was higher than our estimate of 1,085 million pounds. The upside can be attributed to higher mining rates.
The company sold 549,000 ounces of gold, up around 16.3% year over year. The figure was lower than our estimate of 580,000 ounces. Freeport also sold 22 million pounds of molybdenum, up around 15.8% year over year during the quarter. The figure was higher than our estimate of 20 million pounds.
Consolidated average unit net cash costs per pound of copper were $1.52, flat year over year. The figure was lower than our estimate of $1.58.
The average realized price for copper was $3.81 per pound, up around 1% year over year. The figure was higher than our estimate of $3.6 per pound. The average realized price per ounce for gold rose around 13.7% year over year to $2,034. The figure was above our estimate of $1,900.
Financial Position
Cash and cash equivalents (including restricted) at the end of the quarter were $5.97 billion, down around 27.8% year over year. The company’s long-term debt was $8.66 billion, down around 9.7% year over year.
Cash flows provided by operations were $5.28 billion for the year ended Dec 31, 2023.
Guidance
Freeport expects consolidated sales for the year 2024 to be approximately 4.1 billion pounds of copper, 2 million ounces of gold and 85 million pounds of molybdenum. This includes an estimated 1 billion pounds of copper, 575,000 ounces of gold, and 20 million pounds of molybdenum in the first quarter of 2024.
The unit net cash costs for copper are expected to average $1.60 per pound for 2024, encompassing $1.55 per pound in the first quarter of the same year. These predictions are based on the achievement of current sales volume and cost estimates, assuming average prices of $2,000 per ounce of gold and $19.00 per pound of molybdenum for the entire year.
The company is also forecasting operating cash flows of approximately $5.8 billion for 2024. Meanwhile, capital expenditures for the full year are projected to be around $4.6 billion.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
The consensus estimate has shifted -6.84% due to these changes.
VGM Scores
At this time, Freeport-McMoRan has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Freeport-McMoRan has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.