| What to Expect from Freeport-McMoRan’s 3Q15 Earnings | |
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Why Is This Week So Crucial for Freeport-McMoRan Investors? (Continued from Prior Part) 3Q15 earnings expected on October 22
Freeport-McMoRan (FCX) is expected to release its 3Q15 financial results on October 22. According to a Bloomberg survey, the company is expected to post an EBITDA (earnings before interest, taxes, depreciation, and amortization) of $965 million on sales of $4.1 billion in the quarter. In 2Q15, Freeport posted an adjusted EBITDA of $1.2 billion on net revenues of $4.2 billion.
Investors looking at direct exposure to base metals can also consider the PowerShares DB Base Metals ETF (DBB).
Could Freeport surprise us?
In each of the last five quarters, Freeport’s share price has fallen after it released its earnings. Its 2Q15 earnings were met with a major negative reaction on Wall Street, and the stock tumbled ~10% after the earnings announcement.
Spot copper prices have averaged $5,259 per metric ton in 3Q15 compared to $6,043 per ton in the previous quarter. WTI (West Texas Intermediate) has averaged $46 per barrel in 3Q15 compared to $58 in 2Q15.
Looking at Freeport’s earnings sensitivity to WTI and copper prices, its 3Q15 earnings could take a hit compared to the previous quarter. A positive earnings surprise seems unlikely considering the way commodity prices have trended in the quarter.
What should you watch for?
- You should watch how Freeport’s unit production costs progress in 3Q15. Freeport’s unit cash costs are currently higher compared to Rio Tinto (RIO), BHP Billiton (BHP), and Turquoise Hill Resources (TRQ). The graph above shows Freeport’s unit cash costs compared to other copper producers.
- You should look for any clarity in Freeport’s energy business in the 3Q15 earnings conference call. The company is currently reviewing several options, including the previously announced IPO (initial public offering), the spin-off, the joint venture agreement, and further spending cuts.
Visit Market Realist’s Copper page to learn more about Freeport-McMoRan.
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Freeport McMoRan Copper and Gold Inc.
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PRODUCTEUR |
CODE : FCX |
ISIN : US35671D8570 |
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ProfilIndicateurs de MarchéVALEUR : Projets & res.Communiqués de PresseRapport annuelRISQUE : Profile actifsContactez la cie |
Freeport McMoran est une société de production minière d'or et de cuivre basée aux Etats-Unis D'Amerique. Freeport McMoran est productrice d'or, de cuivre, d'argent, de cobalt et de molybdène au Chili, au Perou, en Indonesie et en Republique Democratique Du Congo, en développement de projets de cuivre au Perou, et détient divers projets d'exploration au Chili. Ses principaux projets en production sont CANDELARIA, EL ABRA, CHINO - MILL, HENDERSON, MIAMI - ROM LEACH, MORENCI - MILL, OJOS DEL SALADO, MORENCI et MORENCI - ROM LEACH au Chili, GRASBERG, SIERRITA et BAGDAD en Indonesie, TENKE FUNGURUME et TYRONE en Republique Democratique Du Congo et CERRO VERDE au Perou, son principal projet en développement est SAFFORD au Perou et ses principaux projets en exploration sont BAGDAD - ROM LEACH et CHINO - ROM LEACH au Perou et CERRO VERDE - MILL, CERRO VERDE - CRUSHED LEACH, CERRO VERDE - ROM LEACH, EL ABRA - ROM LEACH et CLIMAX au Chili. Freeport McMoran est cotée aux Etats-Unis D'Amerique et en Allemagne. Sa capitalisation boursière aujourd'hui est 68,1 milliards US$ (59,6 milliards €). La valeur de son action a atteint son plus bas niveau récent le 06 mars 2020 à 10,00 US$, et son plus haut niveau récent le 28 mars 2024 à 47,02 US$. Freeport McMoran possède 1 448 000 000 actions en circulation. |