The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Southern Copper met expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share improved.
Margins contracted across the board.
Southern Copper notched revenue of $1.67 billion. The five analysts polled by S&P Capital IQ predicted revenue of $1.69 billion. GAAP sales were 11% higher than the prior-year quarter's $1.50 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.64. The six earnings estimates compiled by S&P Capital IQ predicted $0.68 per share. GAAP EPS of $0.64 for Q4 were 10% higher than the prior-year quarter's $0.58 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 60.9%, 400 basis points worse than the prior-year quarter. Operating margin was 54.0%, 350 basis points worse than the prior-year quarter. Net margin was 32.2%, 60 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.48 billion. On the bottom line, the average EPS estimate is $0.56.
Next year's average estimate for revenue is $6.90 billion. The average EPS estimate is $2.61.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 4,210 members out of 4,368 rating the stock outperform, and 158 members rating it underperform. Among 1,157 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,131 give Southern Copper a green thumbs-up, and 26 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Southern Copper is hold, with an average price target of $36.69.
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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. 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.