The 10-second takeaway
For the quarter ended March 31 (Q1), Southern Copper beat expectations on revenues and earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share grew significantly.
Margins improved across the board.
Southern Copper reported revenue of $1.81 billion. The three analysts polled by S&P Capital IQ predicted sales of $1.61 billion on the same basis. GAAP reported sales were 13% higher than the prior-year quarter's $1.60 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 $0.73. The five earnings estimates compiled by S&P Capital IQ anticipated $0.61 per share. GAAP EPS of $0.73 for Q1 were 30% higher than the prior-year quarter's $0.56 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 60.0%, 600 basis points better than the prior-year quarter. Operating margin was 54.0%, 640 basis points better than the prior-year quarter. Net margin was 34.4%, 450 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.66 billion. On the bottom line, the average EPS estimate is $0.63.
Next year's average estimate for revenue is $6.80 billion. The average EPS estimate is $2.61.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 4,201 members out of 4,358 rating the stock outperform, and 157 members rating it underperform. Among 1,001 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 973 give Southern Copper a green thumbs-up, and 28 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 $36.37.
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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.