Freeport's (FCX) Earnings and Revenues Surpass Estimates in Q1

Zacks Equity Research

23 April 2024 at 9:27 am·4-min read

Freeport-McMoRan Inc. FCX recorded net income (attributable to common stock) of $473 million or 32 cents per share in first-quarter 2024, down around 29% from $663 million or 46 cents in the year-ago quarter.

Barring one-time items, adjusted earnings per share were 32 cents, topping the Zacks Consensus Estimate of 27 cents.

Revenues rose roughly 17% year over year to $6,321 million. The figure also surpassed the Zacks Consensus Estimate of $5,657.1 million. The company witnessed higher copper sales in the reported quarter. It also benefited from higher gold prices and lower costs.

Freeport-McMoRan Inc. Price, Consensus and EPS Surprise

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

Operational Highlights

Copper production rose around 12% year over year to 1,085 million pounds in the reported quarter. The figure was ahead of our estimate of 1,025 million pounds.

Consolidated sales climbed around 33% year over year to 1,108 million pounds of copper. The figure was higher than our estimate of 1,001 million pounds. The upside can be attributed to higher mining and milling rates and ore grades at PT-FI.

The company sold 568,000 ounces of gold, up around 110% year over year. FCX also sold 20 million pounds of molybdenum, up around 5% year over year, in the reported quarter.

Consolidated average unit net cash costs per pound of copper were $1.51, down from $1.76 a year ago. The figure was lower than our estimate of $1.55.

The average realized price for copper was $3.94 per pound, down around 4% year over year. The figure was higher than our estimate of $3.81 per pound. The average realized price per ounce for gold rose around 10% year over year to $2,145. The figure was above our estimate of $2,019.

Financial Position

Cash and cash equivalents at the end of the quarter were $5,208 million, down around 24% year over year. The company’s total debt was $9,425 million, down around 2% year over year.

Cash flows provided by operations were $1.9 billion for the reported quarter, up around 81% year over year.

Guidance

Freeport expects consolidated sales for 2024 to be approximately 4.15 billion pounds of copper, 2 million ounces of gold and 84 million pounds of molybdenum. This includes an estimated 1 billion pounds of copper, 500,000 ounces of gold, and 21 million pounds of molybdenum in the second quarter of 2024.

The unit net cash costs for copper are expected to average $1.57 per pound for 2024. The same has been projected at $1.57 per pound for the second quarter.

The company also sees operating cash flows of approximately $7.4 billion for 2024. Capital expenditures for the full year are projected to be around $4.6 billion.

Price Performance

Freeport’s shares are up 23.8% in the past year compared with a 30.4% rise of the industry.

Image Source: Zacks Investment Research

Zacks Rank & Key Picks

FCX currently carries a Zacks Rank #3 (Hold).

Better-ranked stocks worth a look in the basic materials space include Denison Mines Corp. DNN, Carpenter Technology Corporation CRS and Innospec Inc. IOSP.

Denison Mines beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 300%. The company’s shares have soared roughly 96% in the past year. DNN carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Carpenter Technology’s current fiscal year earnings is pegged at $3.96, indicating a year-over-year surge of 247.4%. CRS beat the Zacks Consensus Estimate in three of the last four quarters while matching it once, with the average earnings surprise being 12.2%. The company’s shares have rallied around 62% in the past year. CRS currently carries a Zacks Rank #2 (Buy).

The consensus estimate for Innospec’s current-year earnings is pegged at $6.77 per share, indicating a 11.2% year-over-year rise. IOSP, carrying a Zacks Rank #2, beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 10.5%. The company’s shares have gained around 16% in the past year.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Freeport-McMoRan Inc. (FCX) : Free Stock Analysis Report

Carpenter Technology Corporation (CRS) : Free Stock Analysis Report

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