A Glimpse of Freeport-McMoRan's Earnings Potential

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.

Anticipation surrounds Freeport-McMoRan's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.

New investors should understand that while earnings performance is important, market reactions are often driven by guidance.

Performance in Previous Earnings

In the previous earnings release, the company beat EPS by $0.08, leading to a 2.41% drop in the share price the following trading session.

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

Freeport-McMoRan Share Price Analysis

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 Views on Freeport-McMoRan

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

Analysts have given Freeport-McMoRan a total of 10 ratings, with the consensus rating being Outperform. The average one-year price target is $55.1, indicating a potential 14.36% upside.

Peer Ratings Comparison

The below comparison of the analyst ratings and average 1-year price targets of Newmont, Southern Copper and Nucor, three prominent players in the industry, gives insights for their relative performance expectations and market positioning.

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

Overview of Peer Analysis

The peer analysis summary presents essential metrics for Newmont, Southern Copper and Nucor, unveiling their respective standings within the industry and providing valuable insights into their market positions and comparative performance.

Key Takeaway:

Freeport-McMoRan ranks at the bottom for Revenue Growth among its peers. It is in the middle for Gross Profit. For Return on Equity, it is at the bottom.

Get to Know Freeport-McMoRan Better

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.

Financial Insights: Freeport-McMoRan

Market Capitalization Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.

Revenue Growth: Freeport-McMoRan displayed positive results in 3 months. As of 30 June, 2024, the company achieved a solid revenue growth rate of approximately 15.46%. This indicates a notable 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: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of 9.3%, the company may need to address 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 falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of 1.13%, the company may face hurdles in generating optimal returns from its assets.

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.