Categories Consumer, Earnings, U.S. Markets News

Freeport-McMoRan misses Q4 earnings and revenue estimates; stock drops

Freeport-McMoRan’s (FCX) Q4 earnings of 11 cents per share and revenue of $3.68 billion fell short of analysts’ views and the stock was down about 5% in the pre-market trading on Thursday. Analysts had expected the company to post earnings of 18 cents per share on revenue of $3.8 billion. EPS dwindled 78%, while revenue dropped 27% compared to the prior year fourth quarter.

The weaker-than-expected results of the fourth quarter were primarily driven by the year-over-year drop in copper production and sales as well as gold production and sales. Molybdenum sales were flat in the quarter.

Q4 copper and gold sales of 785 million pounds and 266 thousand ounces were lower than the prior-year quarter sales of 1 billion pounds and 593 thousand ounces, primarily reflecting anticipated lower ore grades and mill rates in Indonesia.

Related: Freeport-McMoRan Q3 2018 earnings conference call transcript

North America’s consolidated copper sales volumes of dropped to 333 million pounds in the recently ended quarter compared to 354 million pounds in the prior-year quarter. North America copper sales are estimated to approximate 1.4 billion pounds for 2019, similar to 2018.

South America’s consolidated copper sales volumes increased to 325 million pounds from 312 million pounds a year ago. Sales from South America mining are expected to approximate 1.3 billion pounds of copper for 2019, compared with 1.25 billion pounds of copper in 2018.

Sales volumes for 2019 are expected to approximate 3.3 billion pounds of copper, 0.8 million ounces of gold and 94 million pounds of molybdenum, including 0.8 billion pounds of copper, 255 thousand ounces of gold and 24 million pounds of molybdenum in Q1 2019.

“As we enter 2019, our priorities are focused on achieving important milestones to ramp-up production from our large-scale underground assets in the Grasberg minerals district, continuing our focus on productivity and cost management, advancing the Lone Star project and defining future growth options from our large portfolio of reserves and resources,” said CEO Richard Adkerson.

Freeport-McMoRan stock rises on upbeat Q3 results

Shares of Freeport ended Thursday’s regular trading session at $12.31, down 0.57%. The stock plunged to a yearly low ($9.60) on December 26, 2018, and had dropped 37% in the past 12 months period.


We’re on Apple News! Follow us to receive the latest stock market, earnings, and financial news at your fingertips

Most Popular

Stock Watch: Is Darden Restaurants a good buy after earnings?

After a prolonged slowdown, the restaurant industry is returning to normal patterns but macroeconomic uncertainties and high inflation are currently playing spoilsport for it. While the pandemic-related slump forced many

Lennar (LEN) believes that despite near-term challenges, the long-term prospects for housing remain strong

Shares of Lennar Corporation (NYSE: LEN) were down 3% on Monday. The stock has dropped 36% year-to-date and 25% over the past 12 months. The homebuilder delivered mixed results for

KB Home (KBH): What did and did not work for the homebuilder in the third quarter

Shares of KB Home (NYSE: KBH) were up slightly on Friday. The stock has dropped 40% year-to-date and 35% over the past 12 months. The company delivered mixed results for

Add Comment
Viewing Highlight