Advertisement
U.S. markets close in 1 hour 44 minutes
  • S&P 500

    5,253.61
    +5.12 (+0.10%)
     
  • Dow 30

    39,788.32
    +28.24 (+0.07%)
     
  • Nasdaq

    16,381.79
    -17.73 (-0.11%)
     
  • Russell 2000

    2,124.02
    +9.67 (+0.46%)
     
  • Crude Oil

    83.02
    +1.67 (+2.05%)
     
  • Gold

    2,242.60
    +29.90 (+1.35%)
     
  • Silver

    25.00
    +0.25 (+1.02%)
     
  • EUR/USD

    1.0797
    -0.0033 (-0.30%)
     
  • 10-Yr Bond

    4.2020
    +0.0060 (+0.14%)
     
  • dólar/libra

    1.2623
    -0.0015 (-0.12%)
     
  • USD/JPY

    151.3970
    +0.1510 (+0.10%)
     
  • Bitcoin USD

    70,921.81
    +2,347.55 (+3.42%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • FTSE 100

    7,952.62
    +20.64 (+0.26%)
     
  • Nikkei 225

    40,168.07
    -594.66 (-1.46%)
     

Freeport's (FCX) Earnings Top Estimates in Q1, Revenues Lag

Freeport-McMoRan Inc. FCX recorded net income (attributable to common stock) of $663 million or 46 cents per share in first-quarter 2023, down from $1,527 million or $1.04 in the year-ago quarter.

Barring one-time items, adjusted earnings per share came in at 52 cents, topping the Zacks Consensus Estimate of 47 cents.

Revenues declined roughly 18% year over year to $5,389 million. The figure missed the Zacks Consensus Estimate of $5,447.2 million. The results were hurt by lower copper prices. The company also witnessed lower copper and gold sales in the reported quarter.

 

Freeport-McMoRan Inc. Price, Consensus and EPS Surprise

 

Freeport-McMoRan Inc. Price, Consensus and EPS Surprise
Freeport-McMoRan Inc. Price, Consensus and EPS Surprise

Freeport-McMoRan Inc. price-consensus-eps-surprise-chart | Freeport-McMoRan Inc. Quote

 

Operational Highlights

Copper production fell roughly 4% year over year to 965 million pounds in the reported quarter.

Consolidated sales declined around 19% year over year to 832 million pounds of copper. The company sold 270,000 ounces of gold (down around 34% year over year) and 19 million pounds of molybdenum (stable year over year) during the quarter. The decline in copper and gold sales reflects the deferral of sales recognition for around 110 million pounds associated with the PT Smelting tolling arrangement. FCX also witnessed lower operating rates at Grasberg related to a significant weather event that temporarily disrupted operations during February.

Consolidated average unit net cash costs per pound of copper were $1.76, up around 32% year over year. The upside was caused by lower copper sales volumes from PT-FI.

Average realized price for copper was $4.11 per pound, down roughly 12% year over year. Average realized price per ounce for gold rose around 2% year over year to $1,949. Average realized price per pound for molybdenum was $30.32, up around 57% year over year.

Financial Position

Cash and cash equivalents at the end of the quarter were $6,852 million, down around 18% year over year. The company’s long-term debt was $9,586 million, up around 16% year over year.

Cash flows provided by operations were $1,050 million for the reported quarter.

Guidance

For 2023, Freeport anticipates consolidated sales volumes to be roughly 4.1 billion pounds of copper.

The company also expects gold sales volumes of 1.8 million ounces for 2023. It also expects sales of 79 million pounds of molybdenum for the year.

For the second quarter of 2023, Freeport expects sales volumes to be 1.1 billion pounds of copper, 500,000 ounces of gold and 20 million pounds of molybdenum.

Unit net cash costs for copper are predicted to average $1.55 per pound for 2023, including $1.51 per pound in the second quarter.

The company also expects operating cash flows of roughly $7 billion for 2023.

Capital expenditure for full-year 2023 is projected to be around $5.1 billion.

Price Performance

Freeport’s shares are down 1.3% in the past year compared with 28.1% rise of the industry.

 

Zacks Investment Research
Zacks Investment Research


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 Steel Dynamics, Inc. STLD, Olympic Steel, Inc. ZEUS and Linde plc LIN.

Steel Dynamics currently sports a Zacks Rank #1 (Strong Buy). The Zacks Consensus Estimate for STLD's current-year earnings has been revised 36.5% upward in the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.

Steel Dynamics’ earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 10.7%, on average. STLD has gained around 24% in a year.

Olympic Steel currently sports a Zacks Rank #1. The Zacks Consensus Estimate for ZEUS's current-year earnings has been revised 33.1% upward in the past 60 days.

Olympic Steel’s earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 26.2%, on average. ZEUS has rallied around 34% in a year.

Linde currently carries a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for LIN’s current-year earnings has been revised 0.9% upward in the past 60 days.

Linde beat Zacks Consensus Estimate in each of the last four quarters. It delivered a trailing four-quarter earnings surprise of 5.9% on average. LIN’s shares have gained roughly 19% in the past year.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Steel Dynamics, Inc. (STLD) : Free Stock Analysis Report

Freeport-McMoRan Inc. (FCX) : Free Stock Analysis Report

Olympic Steel, Inc. (ZEUS) : Free Stock Analysis Report

Linde PLC (LIN) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

Advertisement