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Ero Copper (ERO) Q4 Earnings Miss Estimates, Decline Y/Y
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Ero Copper (ERO - Free Report) reported fourth-quarter 2023 adjusted earnings per share of 21 cents, which missed the Zacks Consensus Estimate of 23 cents. The bottom line declined 13% year over year.
Including one-time items, ERO reported earnings of 37 cents per share in the fourth quarter of 2023 compared with 24 cents in the fourth quarter of 2022.
Ero Copper’s revenues were $116 million in the quarter under review, flat compared with the year-ago quarter. The top line surpassed the Zacks Consensus Estimate of $104 million.
Copper C1 cash costs for the quarter were $1.75 in the fourth quarter of 2023 compared with $1.59 in the fourth quarter of 2022. Gold C1 cash costs for the fourth quarter of 2023 were $413 compared with $371 in the year-ago quarter. All-in Sustaining Costs (AISC) for the same period were $991 compared with $844 in the fourth quarter of 2022. Gross profit rose 18% year over year to $116 million. ERO’s adjusted EBITDA declined 5.5% year over year to $50.3 million in the fourth quarter of 2023. The adjusted EBITDA margin was 43.2% compared with 45.6% in the year-ago quarter.
Production Details
Ero Copper produced 1,760 tons of copper in the fourth quarter of 2023 and 43,857 tons of copper in 2023. Gold production was 16,867 ounces in the fourth quarter, resulting in a record 59,222 ounces in 2023.
2023 Results
Ero Copper reported adjusted earnings per share of 87 cents, which missed the Zacks Consensus Estimate of 88 cents. Earnings declined 4% year over year.
Including one-time items, ERO reported earnings of 98 cents per share in 2023 compared with $1.10 in 2022.
ERO Copper’s revenues grew 0.3% year over year to $427.5 million in 2023, missing the consensus estimate of $434 million.
ERO’s available liquidity at 2023-end was $261.7 million, including cash and cash equivalents of $111.7 million and $150 million of undrawn availability under the company's senior secured revolving credit facility.
Guidance for 2024
In 2024, the company expects consolidated copper production between 59,000 tons and 72,000 tons in concentrate. Gold production from Xavantina operations is projected in the range of 55,000-60,000 ounces.
Copper C1 cash cost guidance on a consolidated basis is expected to be between $1.50 and $1.75 for the year. At the Xavantina Operations, the gold C1 cash cost is expected to be between $550 and $650, reflecting improved fixed cost efficiencies driven by higher expected gold production, partially offsetting the impact of planned decreases to mined and processed gold grades. The company has set a gold AISC guidance between $1,050 and $1,150.
Price Performance
Shares of Ero Copper have lost 1.2% in a year compared with the industry’s 1.8% decline.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
Ero Copper currently carries a Zacks Rank #3 (Hold).
The Zacks Consensus Estimate for Carpenter Technology’s 2024 earnings is pegged at $3.96 per share. The consensus estimate for 2024 earnings has moved 11% north in the past 60 days. It has an average trailing four-quarter earnings surprise of 14.3%. CRS shares have gained 27% in a year.
The Zacks Consensus Estimate for Ecolab’s 2024 earnings is pegged at $6.39 per share, indicating an increase of 22.7% from the prior year’s reported number. It has an average trailing four-quarter earnings surprise of 1.7%. ECL shares have gained 38.8% in a year.
Alpha Metallurgical Resources has an average trailing four-quarter earnings surprise of 9.6%. The Zacks Consensus Estimate for AMR’s 2024 earnings is pegged at $43.05 per share. Earnings estimates have moved 48% north in the past 60 days. AMR shares have rallied 106% in a year.
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Ero Copper (ERO) Q4 Earnings Miss Estimates, Decline Y/Y
Ero Copper (ERO - Free Report) reported fourth-quarter 2023 adjusted earnings per share of 21 cents, which missed the Zacks Consensus Estimate of 23 cents. The bottom line declined 13% year over year.
Including one-time items, ERO reported earnings of 37 cents per share in the fourth quarter of 2023 compared with 24 cents in the fourth quarter of 2022.
Ero Copper’s revenues were $116 million in the quarter under review, flat compared with the year-ago quarter. The top line surpassed the Zacks Consensus Estimate of $104 million.
Copper C1 cash costs for the quarter were $1.75 in the fourth quarter of 2023 compared with $1.59 in the fourth quarter of 2022. Gold C1 cash costs for the fourth quarter of 2023 were $413 compared with $371 in the year-ago quarter. All-in Sustaining Costs (AISC) for the same period were $991 compared with $844 in the fourth quarter of 2022.
Gross profit rose 18% year over year to $116 million. ERO’s adjusted EBITDA declined 5.5% year over year to $50.3 million in the fourth quarter of 2023. The adjusted EBITDA margin was 43.2% compared with 45.6% in the year-ago quarter.
Production Details
Ero Copper produced 1,760 tons of copper in the fourth quarter of 2023 and 43,857 tons of copper in 2023. Gold production was 16,867 ounces in the fourth quarter, resulting in a record 59,222 ounces in 2023.
2023 Results
Ero Copper reported adjusted earnings per share of 87 cents, which missed the Zacks Consensus Estimate of 88 cents. Earnings declined 4% year over year.
Including one-time items, ERO reported earnings of 98 cents per share in 2023 compared with $1.10 in 2022.
ERO Copper’s revenues grew 0.3% year over year to $427.5 million in 2023, missing the consensus estimate of $434 million.
ERO’s available liquidity at 2023-end was $261.7 million, including cash and cash equivalents of $111.7 million and $150 million of undrawn availability under the company's senior secured revolving credit facility.
Guidance for 2024
In 2024, the company expects consolidated copper production between 59,000 tons and 72,000 tons in concentrate. Gold production from Xavantina operations is projected in the range of 55,000-60,000 ounces.
Copper C1 cash cost guidance on a consolidated basis is expected to be between $1.50 and $1.75 for the year. At the Xavantina Operations, the gold C1 cash cost is expected to be between $550 and $650, reflecting improved fixed cost efficiencies driven by higher expected gold production, partially offsetting the impact of planned decreases to mined and processed gold grades. The company has set a gold AISC guidance between $1,050 and $1,150.
Price Performance
Shares of Ero Copper have lost 1.2% in a year compared with the industry’s 1.8% decline.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
Ero Copper currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the basic materials space are Carpenter Technology Corporation (CRS - Free Report) , Ecolab Inc. (ECL - Free Report) and Alpha Metallurgical Resources, Inc. (AMR - Free Report) . Each of these companies currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Carpenter Technology’s 2024 earnings is pegged at $3.96 per share. The consensus estimate for 2024 earnings has moved 11% north in the past 60 days. It has an average trailing four-quarter earnings surprise of 14.3%. CRS shares have gained 27% in a year.
The Zacks Consensus Estimate for Ecolab’s 2024 earnings is pegged at $6.39 per share, indicating an increase of 22.7% from the prior year’s reported number. It has an average trailing four-quarter earnings surprise of 1.7%. ECL shares have gained 38.8% in a year.
Alpha Metallurgical Resources has an average trailing four-quarter earnings surprise of 9.6%. The Zacks Consensus Estimate for AMR’s 2024 earnings is pegged at $43.05 per share. Earnings estimates have moved 48% north in the past 60 days. AMR shares have rallied 106% in a year.