Does The Street Have Southern Copper Figured Out?

Checking expectations

Seth Jayson
Seth Jayson
Feb 5, 2013 at 12:00AM
Other

Southern Copper (NYSE: SCCO) is expected to report Q1 earnings around Feb. 10. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Southern Copper's revenues will shrink -8.5% and EPS will compress -15.1%.

The average estimate for revenue is $1.65 billion. On the bottom line, the average EPS estimate is $0.62.

Revenue details
Last quarter, Southern Copper logged revenue of $1.65 billion. GAAP reported sales were 1.1% lower than the prior-year quarter's $1.67 billion.

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

EPS details
Last quarter, EPS came in at $0.63. GAAP EPS of $0.63 for Q4 were 1.6% lower than the prior-year quarter's $0.64 per share.

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

Recent performance
For the preceding quarter, gross margin was 57.1%, 380 basis points worse than the prior-year quarter. Operating margin was 49.2%, 480 basis points worse than the prior-year quarter. Net margin was 32.2%, about the same as the prior-year quarter.

Looking ahead


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The full year's average estimate for revenue is $6.89 billion. The average EPS estimate is $2.62.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 4,148 members out of 4,314 rating the stock outperform, and 166 members rating it underperform. Among 1,008 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 976 give Southern Copper a green thumbs-up, and 32 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 $38.08.

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