Freeport-McMoRan Copper & Gold Misses Where it Counts

Freeport-McMoRan Copper & Gold (NYSE: FCX  ) reported earnings on Oct. 22. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Freeport-McMoRan Copper & Gold beat slightly on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue contracted and GAAP earnings per share dropped significantly.

Margins shrank across the board.

Revenue details
Freeport-McMoRan Copper & Gold chalked up revenue of $4.42 billion. The 12 analysts polled by S&P Capital IQ anticipated revenue of $4.35 billion on the same basis. GAAP reported sales were 15% lower than the prior-year quarter's $5.20 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.68. The 19 earnings estimates compiled by S&P Capital IQ predicted $0.73 per share. GAAP EPS of $0.86 for Q3 were 22% lower than the prior-year quarter's $1.10 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 41.3%, 920 basis points worse than the prior-year quarter. Operating margin was 30.3%, 1,110 basis points worse than the prior-year quarter. Net margin was 18.7%, 160 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $5.19 billion. On the bottom line, the average EPS estimate is $0.95.

Next year's average estimate for revenue is $18.72 billion. The average EPS estimate is $3.38.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 5,752 members out of 5,943 rating the stock outperform, and 191 members rating it underperform. Among 1,196 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,160 give Freeport-McMoRan Copper & Gold a green thumbs-up, and 36 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Freeport-McMoRan Copper & Gold is outperform, with an average price target of $47.85.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of Freeport-McMoRan Copper & Gold. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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