Insights into Freeport-McMoRan's Upcoming Earnings

Freeport-McMoRan FCX is preparing to release its quarterly earnings on Tuesday, 2024-10-22. Here's a brief overview of what investors should keep in mind before the announcement.

Analysts expect Freeport-McMoRan to report an earnings per share (EPS) of $0.38.

Freeport-McMoRan bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.

New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).

Earnings History Snapshot

Last quarter the company beat EPS by $0.08, which was followed by a 2.41% drop in the share price the next day.

Here's a look at Freeport-McMoRan's past performance and the resulting price change:

Stock Performance

Shares of Freeport-McMoRan were trading at $48.18 as of October 18. Over the last 52-week period, shares are up 41.4%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analyst Insights on Freeport-McMoRan

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Freeport-McMoRan.

With 10 analyst ratings, Freeport-McMoRan has a consensus rating of Outperform. The average one-year price target is $55.1, indicating a potential 14.36% upside.

Understanding Analyst Ratings Among Peers

The analysis below examines the analyst ratings and average 1-year price targets of Newmont, Southern Copper and Nucor, three significant industry players, providing valuable insights into their relative performance expectations and market positioning.

• The consensus among analysts is an Buy trajectory for Newmont, with an average 1-year price target of $61.5, indicating a potential 27.65% upside.
• Analysts currently favor an Sell trajectory for Southern Copper, with an average 1-year price target of $84.0, suggesting a potential 74.35% upside.
• The prevailing sentiment among analysts is an Outperform trajectory for Nucor, with an average 1-year price target of $170.0, implying a potential 252.84% upside.

Peers Comparative Analysis Summary

In the peer analysis summary, key metrics for Newmont, Southern Copper and Nucor are highlighted, providing an understanding of their respective standings within the industry and offering insights into their market positions and comparative performance.

Key Takeaway:

Freeport-McMoRan ranks at the bottom for Revenue Growth and Gross Profit, while it is in the middle for Return on Equity.

Unveiling the Story Behind Freeport-McMoRan

Freeport-McMoRan Inc is an international mining company. It has organized its mining operations into four primary divisions: North America copper mines, South America mining, Indonesia mining and Molybdenum mines. Its reportable segments include the Morenci, Cerro Verde and Grasberg (Indonesia mining) copper mines, the Rod & Refining operations and Atlantic Copper Smelting and Refining. It derives key revenue from the sale of Copper.

Freeport-McMoRan's Financial Performance

Market Capitalization: Exceeding industry standards, the company's market capitalization places it above industry average in size relative to peers. This emphasizes its significant scale and robust market position.

Revenue Growth: Freeport-McMoRan's revenue growth over a period of 3 months has been noteworthy. As of 30 June, 2024, the company achieved a revenue growth rate of approximately 15.46%. This indicates a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Materials sector.

Net Margin: Freeport-McMoRan's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of 9.3%, the company may encounter challenges in effective cost control.

Return on Equity (ROE): Freeport-McMoRan's ROE excels beyond industry benchmarks, reaching 3.58%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): Freeport-McMoRan's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of 1.13%, the company may face hurdles in achieving optimal financial performance.

Debt Management: With a high debt-to-equity ratio of 0.54, Freeport-McMoRan faces challenges in effectively managing its debt levels, indicating potential financial strain.

To track all earnings releases for Freeport-McMoRan visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.