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Freeport-McMoRan (NYSE:FCX) is scheduled to announce Q4 earnings results on Wednesday, January 25th, before market open.
The consensus EPS Estimate is $0.44 (-54.2% Y/Y) and the consensus Revenue Estimate is $5.41B (-12.2% Y/Y).
Over the last 2 years, FCX has beaten EPS estimates 75% of the time and has beaten revenue estimates 38% of the time.
Over the last 3 months, EPS estimates have seen 6 upward revisions and 3 downward. Revenue estimates have seen 2 upward revisions and 3 downward.
The copper miner in late October posted a slim Q3 beat, which sent its stock up as much as 8%. However, the company had said that the physical copper market then was “strikingly tight”. Copper prices in Q4 of 2022 generally remained weak.
FCX stock has kicked off the new year on a positive note. The gains have come as copper prices surged after China’s lifting of COVID-19 controls sparked hopes for a rebound in metals demand.
Goldman Sachs in December said copper prices will jump to record highs in the next 12 months, as a looming supply shortage coincides with growing demand, keeping the physical market for the metal in deficit in 2023.
Freeport has a Quant rating of HOLD, with a 3.33 rating score.
Meanwhile Wall Street analysts and Seeking Alpha authors rate the FCX stock BUY. FCX has an industry ranking of 3 out of 6 in the copper mining sector, as per SA’s Quant ranking.
Recent analysis: SA contributor JR Research wrote “FCX last traded at an NTM EBITDA of 9x, well above its 10Y average of 6.3x. With an expected recovery of its profitability through 2024 likely baking in a further recovery in copper prices, FCX’s FY24 EBITDA multiple of 6.7x is in line with its 10Y average”.
Another contributor Juxtaposed Ideas wrote “FCX’s profit margins may be compressed in 2023 due to the massive incoming copper supply, while demand remains volatile due to a worsening macroeconomic outlook”.
The company in Dec. paid a quarterly dividend of 15 cents a share, in line with its previous payout.
FCX stock fell 6.8% in 2022, while the benchmark S&P 500 (SP500) slid nearly 20% for the year.
