Freeport-McMoRan Copper & Gold Earnings: Here’s Why the Stock is Up Now

Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 2.07%.

Freeport-McMoRan Copper & Gold Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 38.75% to $0.49 in the quarter versus EPS of $0.80 in the year-earlier quarter.

Revenue: Decreased 4.18% to $4.29 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Freeport-McMoRan Copper & Gold Inc. reported adjusted EPS income of $0.49 per share. By that measure, the company beat the mean analyst estimate of $0.41. It beat the average revenue estimate of $4.28 billion.

Quoting Management: James R. Moffett, Chairman of the Board; Richard C. Adkerson, Vice Chairman, President and Chief Executive Officer; and James C. Flores, Vice Chairman and President and Chief Executive Officer of FM O&G, said, “We are pleased to report our initial quarterly results following the second-quarter 2013 oil and gas acquisitions. As an organization, we are focused on strong execution of our business plans, which provide exposure to a significant, geographically diverse natural resource base, with an established and successful operating history and with multi-faceted and financially attractive growth opportunities. We are committed to our business plan of reducing debt and maintaining a strong balance sheet, while investing in financially attractive projects and providing cash returns to shareholders. We are taking measures to execute prudent capital management in an uncertain global economic environment and are committed to pursuing additional divestitures and capital cost reductions as required to maintain a strong balance sheet while preserving a strong resource position and a portfolio of assets with attractive long-term growth prospects.”

Key Stats (on next page)…

Revenue decreased 6.44% from $4.58 billion in the previous quarter. EPS decreased 32.88% from $0.73 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.95 to a profit $0.68. For the current year, the average estimate has moved down from a profit of $3.67 to a profit of $2.82 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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