Freeport-McMoran Copper and Gold Inc. Earnings: Strong Revenue Helps Net Income
S&P 500 (NYSE:SPY) component Freeport-McMoran Copper & Gold Inc. (NYSE:FCX) reported net income above Wall Street’s expectations for the second quarter. Freeport-McMoRan Copper & Gold Inc. is an international company that mines copper, gold and molybdenum.
Freeport-McMoran Copper & Gold Earnings Cheat Sheet for the Second Quarter
Results: Net income for the copper company rose to $1.37 billion ($1.43 per share) vs. $664 million (70 cents per share) in the same quarter a year earlier. This is a more than twofold rise from the year earlier quarter.
Revenue: Rose 50.5% to $5.81 billion from the year earlier quarter.
Actual vs. Wall St. Expectations: FCX beat the mean analyst estimate of $1.35 per share. Analysts were expecting revenue of $5.76 billion.
Quoting Management: James R. Moffett, Chairman of the Board, and Richard C. Adkerson, President and Chief Executive Officer, said, “Our second-quarter results reflect strong operating performance and favorable pricing for our products. FCX’s global team continues to execute our operating plans in an impressive fashion, producing significant quantities of copper, gold and molybdenum to meet growing global demand. Our large resource position and successful exploration program provide significant opportunities for growth. We are advancing projects expeditiously to increase our production while generating attractive returns for shareholders. Our strong financial position and cash flow generation provide the financial resources required for investment as well as substantial cash returns for shareholders.”
The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 58.6% and in the fourth quarter of the last fiscal year, the figure rose 52%.
From the first quarter, the company’s current liabilities fell to $3.11 billion from $4.75 billion.
The company has now topped analyst estimates for the last four quarters. It beat the mark by 31 cents in the first quarter, by 18 cents in the fourth quarter of the last fiscal year, and by 18 cents in the third quarter of the last fiscal year.
Competitors to Watch: Southern Copper Corp. (NYSE:SCCO), Rio Tinto plc (NYSE:RIO), Newmont Mining Corporation (NYSE:NEM), Taseko Mines Limited (AMEX:TGB), HudBay Minerals Inc. (NYSE:HBM), Alcoa Inc. (NYSE:AA), SPDR Gold Trust (NYSE:GLD), Royal Gold, Inc. (NASDAQ:RGLD), Augusta Resource Corp. (AMEX:AZC), and Vista Gold Corp. (AMEX:VGZ).
(Source: Xignite Financials)