Freeport-McMoran Copper & Gold Inc. Earnings: Weak Revenue and Net Income

S&P 500 (NYSE:SPY) component Freeport-McMoran Copper & Gold Inc. (NYSE:FCX) posted a decrease in profit as revenue declined. Freeport-McMoRan Copper & Gold is an international company that mines copper, gold and molybdenum.

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Freeport-McMoran Copper & Gold Earnings Cheat Sheet for the Fourth Quarter.

Results: Net income for the copper company fell to $640 million (67 cents per share) vs. $1.55 billion ($1.63 per share) a year earlier. This is a decline of 58.7% from the year earlier quarter.

Revenue: Fell 25.7% to $4.16 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: FCX beat the mean analyst estimate of 64 cents per share. It beat the average revenue estimate of $3.78 billion.

Quoting Management: James R. Moffett, Chairman of the Board, and Richard C. Adkerson, President and Chief Executive Officer, said, “FCX’s fourth-quarter results reflect strong operating performance in the Americas and in Africa, and were unfavorably impacted by disruptions at our Grasberg operations in Indonesia. Despite the fourth-quarter disruptions, we achieved record financial results in 2011. We are pleased to have reached agreement with the union at the Grasberg mine and with the accomplishments of our team in completing pipeline repairs. We are taking steps to restore full operations. We are continuing to advance our growth projects which are expected to result in meaningful increases to copper and molybdenum production in future periods. Our exploration programs continue to identify opportunities to grow our reserve base. We ended the year with significantly more cash than debt and have a positive outlook for the future prospects of our business.”

Key Stats:

A year-over-year revenue decrease last quarter snaps a streak of four consecutive quarters of revenue increases. The best quarter in that span was the second quarter, which saw revenue rise 50.5%.

The company has now seen net income fall in each of the last two quarters. In the third quarter, net income fell 10.6% from the year earlier quarter.

The company topped expectations last quarter after falling short of forecasts in the third quarter with net income of $1.10 versus a mean estimate of net income of $1.12 per share.

Looking Forward: The outlook for the company’s results in the upcoming quarter is unfavorable. The average estimate for the first quarter of the next fiscal year is 91 cents per share, down from $1.07 ninety days ago. The average estimate for the fiscal year is $4.79 per share, down from $5.09 ninety days ago.

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), Western Copper Corporation (WRN), Royal Gold, Inc. (NASDAQ:RGLD), Augusta Resource Corp. (AMEX:AZC), and Vista Gold Corp. (AMEX:VGZ).

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

 

To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com