Freeport-McMoRan Copper & Gold Misses Where it Counts

Freeport-McMoRan Copper & Gold (NYS: FCX) reported earnings on July 23. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q2), Freeport-McMoRan Copper & Gold met expectations on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue shrank. Non-GAAP earnings per share contracted significantly. GAAP earnings per share contracted significantly.


Margins shrank across the board.

Revenue details
Freeport-McMoRan Copper & Gold booked revenue of $4.29 billion. The 13 analysts polled by S&P Capital IQ expected to see net sales of $4.35 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.22. The 20 earnings estimates compiled by S&P Capital IQ averaged $0.44 per share. Non-GAAP EPS of $0.22 for Q2 were 73% lower than the prior-year quarter's $0.80 per share. GAAP EPS of $0.49 for Q2 were 34% lower than the prior-year quarter's $0.74 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 33.5%, 790 basis points worse than the prior-year quarter. Operating margin was 15.3%, much worse than the prior-year quarter. Net margin was 11.2%, 470 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $5.88 billion. On the bottom line, the average EPS estimate is $0.72.

Next year's average estimate for revenue is $21.36 billion. The average EPS estimate is $2.89.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 5,810 members out of 6,011 rating the stock outperform, and 201 members rating it underperform. Among 980 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 933 give Freeport-McMoRan Copper & Gold a green thumbs-up, and 47 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Freeport-McMoRan Copper & Gold is outperform, with an average price target of $36.39.

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The article Freeport-McMoRan Copper & Gold Misses Where it Counts originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of Freeport-McMoRan Copper & Gold. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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