Freeport Q4 Earnings Miss, Sales Beat Estimates

Freeport-McMoRan Inc. (FCX - Free Report), formerly Freeport-McMoRan Copper & Gold Inc., 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’s copper business remains affected by the sluggish global economy and supply related issues. The difficult market conditions in Europe are still affecting copper markets. The slowdown in China (a major market for copper) adds to the concern. However, Freeport is aggressive managing its costs and continues to progress with its expansion initiatives.

Let’s have a quick look at this mining behemoth’s fourth-quarter release.

Estimate Trend & Surprise History

Estimate for Freeport for the fourth quarter has seen an uptrend over the past month. The company has beaten the Zacks Consensus Estimate in 2 of the trailing 4 quarters while missing in the other 2 with an average negative surprise of 6.47%.

Earnings  

Freeport reported adjusted earnings of 25 cents per share for the quarter, missing the Zacks Consensus Estimate of 32 cents.

Freeport-McMoran, Inc. Price and EPS Surprise

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

Revenues

Freeport posted revenues of $4,377 million, beating the Zacks Consensus Estimate of $4,082 million.

Key Stats/Developments to Note

In the fourth quarter, Freeport repaid debt worth $2.5 billion, using the proceeds from the recent sale of assets. For 2017, the company remains focused on reducing debt by generating significant cash flows to increase shareholder value.

Zacks Rank

Currently, Freeport has a Zacks Rank #3 (Hold), but that could change following its earnings report which was just released.

Market Reaction

Freeport’s shares dropped 3.5% 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.