Freeport-McMoRan Copper & Gold
The 10-second takeaway
For the quarter ended June 30 (Q2), Freeport-McMoRan Copper & Gold met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly and GAAP earnings per share dropped significantly.
Margins dropped across the board.
Freeport-McMoRan Copper & Gold reported revenue of $4.48 billion. The 12 analysts polled by S&P Capital IQ looked for a top line of $4.46 billion on the same basis. GAAP reported sales were 23% lower than the prior-year quarter's $5.81 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 $0.80. The 18 earnings estimates compiled by S&P Capital IQ predicted $0.77 per share. GAAP EPS of $0.74 for Q2 were 48% lower than the prior-year quarter's $1.43 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 41.4%, 1,460 basis points worse than the prior-year quarter. Operating margin was 31.1%, 1,630 basis points worse than the prior-year quarter. Net margin was 15.9%, 760 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $4.30 billion. On the bottom line, the average EPS estimate is $0.69.
Next year's average estimate for revenue is $18.49 billion. The average EPS estimate is $3.35.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 5,751 members out of 5,943 rating the stock outperform, and 194 members rating it underperform. Among 1,130 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,091 give Freeport-McMoRan Copper & Gold a green thumbs-up, and 39 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 $50.41.
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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. 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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