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Freeport (FCX) to Report Q1 Earnings: What's in the Cards?

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Freeport-McMoRan Inc. FCX is set to release first-quarter 2022 results before the opening bell on Apr 21.

The mining giant’s earnings beat the Zacks Consensus Estimate in two of the last four quarters, while missed once and were in-line on the other occasion. It has a trailing four-quarter earnings surprise of roughly 4.6%, on average. Freeport’s first-quarter results are likely to reflect the benefits of higher copper prices and cost-management actions.

The stock has rallied 41.4% in the past year compared with the industry’s 16.4% rise.

Zacks Investment Research
Zacks Investment Research


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Let’s see how things are shaping up for this announcement.

Zacks Model

Our proven model predicts an earnings beat for Freeport 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 earning beat.

Earnings ESP: Earnings ESP for Freeport is +5.07%. The Zacks Consensus Estimate for the first quarter is currently pegged at 87 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Freeport currently carries a Zacks Rank #3.

What do the Estimates Indicate?

For the first quarter, Freeport expects sales volumes to be 970 million pounds of copper, 380,000 ounces of gold and 20 million pounds of molybdenum.

The Zacks Consensus Estimate for Freeport’s first-quarter consolidated revenues is currently pegged at $6,275 million, which suggests a year-over-year rise of 29.4%.

The Zacks Consensus Estimate for first-quarter consolidated net cash costs per pound of copper is currently pegged at $1.35, which calls for roughly 2.9% fall on a year-over-year basis. The same for average realized price for copper stands at $4.49 per pound, reflecting a 13.9% rise year over year.

The consensus mark for consolidated copper sales for the first quarter is pegged at 988 million pounds, which suggests a year-over-year rise of 19.8%.

A Few Factors to Watch

Freeport is likely to have gained from higher year-over-year copper prices in the first quarter. Copper had a stellar run in 2021, thanks to a strong rebound in demand from the pandemic-led downturn and supply constraints. The widely-used industrial metal witnessed a roughly 25% surge in 2021. The rally has been backed by a rebound in industrial demand globally, optimism regarding economic growth, supply-chain disruptions, and firm demand from top consumer China. The momentum continued in the first quarter of 2022.

Supply from top copper producers Chile and Peru had been under pressure due to a number of factors. Production in Chile, the world’s largest copper producing country, has been impacted by low ore quality, water issues and the impacts of the pandemic. Output in Peru, the second biggest producer, has been hit by social unrest, among other factors. Notably, copper prices hit an all-time high last month on concerns over supply-chain disruptions, exacerbated by Russia's invasion of Ukraine, a spike in energy costs and low global inventories.

Higher year-over-year average realized prices are expected to have boosted Freeport’s margins in the first quarter. The company is also likely to have benefited from its continued focus on maintaining a low-cost position.

The ramp-up of underground mining at PT Freeport Indonesia and efforts to increase operating rates at Cerro Verde and El Abra mines are also likely to have driven the company’s copper sales volumes in the quarter to be reported. The company is making a significant progress to restore production to pre-pandemic levels in South America.

FreeportMcMoRan Inc. Price and EPS Surprise

FreeportMcMoRan Inc. Price and EPS Surprise
FreeportMcMoRan Inc. Price and EPS Surprise

FreeportMcMoRan Inc. price-eps-surprise | FreeportMcMoRan Inc. Quote

Stocks That Warrant a Look

Here are some companies in the basic materials space you may want to consider as our model shows these too have the right combination of elements to post an earnings beat this quarter:

Dow Inc. DOW, scheduled to release earnings on Apr 21, has an Earnings ESP of +5.45% and carries a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Dow’s first-quarter earnings has been revised 5.2% upward over the past 60 days. The Zacks Consensus Estimate for DOW’s earnings for the quarter is currently pegged at $2.02.

Methanex Corporation MEOH, scheduled to release earnings on Apr 27, has an Earnings ESP of +5.85% and carries a Zacks Rank #1.

The Zacks Consensus Estimate for Methanex's first-quarter earnings has been revised 2.5% upward over the past 60 days. The consensus estimate for MEOH’s earnings for the quarter is currently pegged at $2.05.

Cleveland-Cliffs Inc. CLF, expected to release earnings on Apr 22, has an Earnings ESP of +10.18%.

Cleveland-Cliffs carries a Zacks Rank #2. The consensus estimate for CLF’s earnings for the first quarter stands at $1.51.


Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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FreeportMcMoRan Inc. (FCX) : Free Stock Analysis Report

Dow Inc. (DOW) : Free Stock Analysis Report

ClevelandCliffs Inc. (CLF) : Free Stock Analysis Report

Methanex Corporation (MEOH) : Free Stock Analysis Report

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