Arizona-based Freeport-McMoRan Inc. (FCX) is a prominent global mining company engaged in the exploration and processing of copper (HGU24), gold (GCQ24), molybdenum, and silver (SIU24). The company operates through subsidiaries, including PT Freeport Indonesia, Freeport-McMoRan Corporation, and Atlantic Copper. Its market cap currently stands at $69.5 billion, and the company is expected to release its fiscal 2024 Q2 earnings results before the market opens on Tuesday, July 23.
Ahead of the event, analysts expect Freeport-McMoRan to report a profit of $0.45 per share, up 28.6% from $0.35 per share in the year-ago quarter. The company has exceeded Wall Street’s EPS estimates in each of the last four quarters.
Freeport-McMoRan’s EPS of $0.32 for the last reported quarter declined 38.5% year over year but exceeded the consensus estimate by 18.5%. Despite macroeconomic headwinds, the company’s strong operational execution, a high-quality asset portfolio, favorable market conditions for copper, effective cost management, and robust cash flow generation contributed to surpassing estimates.
Looking ahead, analysts expect Freeport-McMoRan to report an EPS of $1.74 in fiscal 2024, up 13% from $1.54 in fiscal year 2023. Its fiscal 2025 EPS is projected to rise 33.3% annually to $2.32.
Over the past 52 weeks, FCX’s stock has surged by 24.6%, outperforming the broader S&P 500 Index's ($SPX) 23.8% gains and the S&P 500 Material Sector SPDR Fund’s (XLB) 5.5% returns during the same period.
Freeport-McMoRan has flourished amid a significant upswing in the copper market, its main revenue driver. In Q1 2024, the company also saw high growth in copper sales, capitalized on higher gold prices, and successfully lowered costs. Its copper sales reached 1.1 billion pounds in Q1, 11% above the January estimate of 1 billion pounds and 33% higher than the 0.8 billion pounds sold in Q1 2023, driven by improved mining and milling rates and higher ore grades at PT-FI.
Despite sliding 2% on April 23, following the release of its Q1 earnings results, FCX stock rose for three consecutive trading sessions. Freeport-McMoRan's revenue of $6.3 billion, up 17.3% annually, exceeded estimates by 10.9%.
The consensus on Freeport-McMoRan stock is “Moderate Buy” overall. Out of 16 analysts covering the stock, nine suggest a “Strong Buy,” two recommend a “Moderate Buy,” and five advise a “Hold.” This consensus is slightly more bullish than two months ago when eight analysts suggested a “Strong Buy.”
Furthermore, the average analyst price target for FCX is $55.09, indicating a potential upside of 13.1% from the current price levels.
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