Freeport-McMoRan Inc. FCX recorded profits (attributable to common stock) of $526 million or 36 cents per share in third-quarter 2024, up around 16% from $454 million or 31 cents in the year-ago quarter.
Barring one-time items, adjusted earnings per share were 38 cents, missing the Zacks Consensus Estimate of 40 cents.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Revenues rose roughly 17% year over year to $6,790 million. The figure surpassed the Zacks Consensus Estimate of $6,459.6 million. The results were driven by higher copper and gold prices in the reported quarter.
Freeport-McMoRan Inc. Price, Consensus and EPS Surprise
Freeport-McMoRan Inc. price-consensus-eps-surprise-chart | Freeport-McMoRan Inc. Quote
FCX’s Operational Highlights
Copper production fell around 3% year over year to 1,051 million pounds in the reported quarter. The figure was ahead of our estimate of 1,047 million pounds.
Consolidated sales declined roughly 7% year over year to 1,035 million pounds of copper. The figure was ahead of our estimate of 1,010 million pounds. This downside was mainly due to the timing of shipments and reduced ore grades and operating rates in North America.
The company sold 558,000 ounces of gold, up around 40% year over year. FCX also sold 19 million pounds of molybdenum, down from 20 million pounds in the prior-year quarter.
Consolidated average unit net cash costs per pound of copper were $1.39, down from $1.73 a year ago. The figure was lower than our estimate of $1.71.
The average realized copper price was $4.30 per pound, up around 13% year over year. The figure was higher than our estimate of $4.28 per pound. The average realized price per ounce for gold rose around 35% year over year to $2,568. The figure was above our estimate of $2,367.
Freeport’s Financial Position
Cash and cash equivalents at the end of the quarter were $5 billion, down around 5% from the prior quarter. The company’s total debt was $9,679 million, up around 3% year sequentially.
Cash flows provided by operations were around $1.9 billion in the reported quarter, up around 51% year over year.
FCX’s Guidance
Freeport expects consolidated sales volumes for 2024 to be around 4.1 billion pounds of copper, 1.8 million ounces of gold and 80 million pounds of molybdenum. This includes fourth-quarter estimates of 980 million pounds of copper, 340,000 ounces of gold and 20 million pounds of molybdenum.
The unit net cash costs for copper are projected to average $1.58 per pound for 2024. The same has been forecast at $1.72 per pound for the fourth quarter.
The company also sees operating cash flows of around $6.8 billion for 2024. Capital expenditures for the full year are projected to be around $4.6 billion.
FCX Stock’s Price Performance
Freeport’s shares are up 43.1% in the past year compared with the Zacks Mining - Non Ferrous industry’s 50% rise.
Image Source: Zacks Investment Research
FCX’s Zacks Rank & Other Key Picks
FCX currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the Basic Materials space are IAMGOLD Corporation IAG, DuPont de Nemours, Inc. DD and AdvanSix Inc. ASIX, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
IAMGOLD is scheduled to release third-quarter results on Nov. 7. The Zacks Consensus Estimate for IAG’s third-quarter earnings is pegged at 12 cents. IAG beat the consensus estimate in each of the last four quarters with the average surprise being 200%. Its shares have shot up roughly 158% in the past year.
DuPont is slated to release third-quarter results on Nov. 5. The consensus estimate for DD’s third-quarter earnings is pegged at $1.03. The company's shares have rallied roughly 17% in the past year.
AdvanSix is scheduled to release third-quarter results on Nov. 1. The Zacks Consensus Estimate for ASIX’s third-quarter earnings is pegged at 66 cents. ASIX has gained around 7% in the past year.
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