Freeport-McMoRan Copper & Gold
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Freeport-McMoRan Copper & Gold beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank significantly, and earnings per share contracted significantly.
Margins contracted across the board.
Freeport-McMoRan Copper & Gold logged revenue of $4.2 billion. The 11 analysts polled by S&P Capital IQ hoped for a top line of $3.8 billion. Sales were 26% lower than the prior-year quarter's $5.6 billion
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.72. The earnings estimates compiled by S&P Capital IQ forecast $0.64 per share on the same basis. GAAP EPS of $0.67 for Q4 were 59% lower than the prior-year quarter's $1.63 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 42.5%, 1,980 basis points worse than the prior-year quarter. Operating margin was 31.2%, 2,410 basis points worse than the prior-year quarter. Net margin was 15.4%, 1,220 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $4.6 billion. On the bottom line, the average EPS estimate is $0.96.
Next year's average estimate for revenue is $20.6 billion. The average EPS estimate is $4.58.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 5,682 members out of 5,880 rating the stock outperform, and 198 members rating it underperform. Among 1,439 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,398 give Freeport-McMoRan Copper & Gold a green thumbs-up, and 41 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 $52.30.
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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.