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Freeport (FCX) Miss Q2 Earnings Estimate, Sales Beat

Freeport-McMoRan Inc. FCX is a mining giant that is primarily engaged in mineral exploration and development, mining and milling of copper, gold, molybdenum and silver, as well as the smelting and refining of copper concentrates.
 
Freeport is taking actions to manage costs and capital spending amid a still challenging operating environment. The company also remains focused on de-leveraging its balance sheet, partly through assets sale.
 
Let’s have a quick look at this mining behemoth’s second-quarter release.
 
Estimate Trend & Surprise History
 
Estimate for Freeport for the second quarter has been going down over the past week. The company has missed the Zacks Consensus Estimate in all the trailing 4 quarters with an average negative surprise of 41.3%.
 
Earnings 
 
Freeport reported adjusted earnings of 17 cents per share for the quarter, missing the Zacks Consensus Estimate of 20 cents.
 
Freeport-McMoran, Inc. Price and EPS Surprise

Freeport-McMoran, Inc. Price and EPS Surprise | Freeport-McMoran, Inc. Quote

Revenues

Freeport posted revenues of $3,711 million, surpassing the Zacks Consensus Estimate of $3,678 million.

Key Stats/Developments to Note

At the end of second quarter, Freeport’s total debt was $15.4 billion. For 2017, the company expects operating cash flows and capital expenditures to be around $3.8 billion and $1.6 billion, respectively.

Freeport anticipates sales volumes for the year 2017 to be roughly 3.7 billion pounds of copper, 1.6 million ounces of gold and 93 million pounds of molybdenum, including 940 million pounds of copper, 375,000 ounces of gold and 22 million pounds of molybdenum in third-quarter 2017. 

 
Freeport has no borrowings with $3.5 billion of credit available at the end of the reported quarter.  
 
Zacks Rank
 
Currently, Freeport has a Zacks Rank #4 (Sell), but that could change following its earnings report which was just released.
 
Market Reaction
 
Freeport’s shares were up 2% in the pre-market trading following the release. It would be interesting to see how the market reacts to the results during the trading session today.
 
Check back later for our full write up on Freeport’s earnings report!
 
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