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Freeport's (FCX) Q4 Earnings & Sales Top Estimates

Zacks Equity Research

Freeport-McMoRan Inc. FCX is a mining giant that is primarily engaged in mineral exploration and development, mining and milling of copper, gold, molybdenum and silver, as well as the smelting and refining of copper concentrates.

Earnings

Freeport reported adjusted earnings of 2 cents per share for fourth-quarter 2019 that topped the Zacks Consensus Estimate of a penny per share.

Revenues

Revenues rose 6.2% year over year to $3,911 million. The figure also surpassed the Zacks Consensus Estimate of $3,790.8 million.

Freeport-McMoRan Inc. Price and EPS Surprise

Freeport-McMoRan Inc. Price and EPS Surprise

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

Estimate Trend & Surprise History

Investors should note that the Zacks Consensus Estimate for Freeport for the fourth quarter have been going down over the past two months. The company has missed the Zacks Consensus Estimate in two of the trailing four quarters, while beating once and meeting the consensus mark in the other occasion, with an average negative surprise of 16.3%.

Key Stats/Developments to Note

For 2020, Freeport anticipates consolidated sales volumes to be roughly 3.5 billion pounds of copper, 800,000 ounces of gold and 88 million pounds of molybdenum. This projection also includes 725 million pounds of copper, 105,000 ounces of gold and 22 million pounds of molybdenum for first-quarter 2020.

For 2020, the company expects operating cash flows of roughly $2.4 billion. Capital expenditures are expected to be around $2.8 billion, which includes $1.8 billion for major mining projects that are mainly related to underground development activities in Grasberg and completion of the Lone Star copper leach project in Arizona.

Zacks Rank

Currently, Freeport has a Zacks Rank #3 (Hold), but that could change following the company’s earnings report which was just released. You can see the complete list of today’s Zacks #1 Rank stocks here.

Market Reaction

Freeport’s shares were down 2.9% in the pre-market trading following the release. It would be interesting to see how the market reacts to the results during the trading session today.

Check back later for our full write up on Freeport’s earnings report!

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