Freeport-McMoRan Inc. FCX is set to release second-quarter 2024 results before the opening bell on Jul 23.The mining giant’s earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 23.5%, on average. While Freeport is expected to have gained from higher copper prices in the second quarter, increased costs and lower sales volumes are likely to have affected its results.The stock has gained 9.6% in the past year compared with the industry’s 25.9% rise.

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Let’s see how things are shaping up for this announcement.

Zacks Model

Our proven model predicts an earnings beat for FCX this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earning beat.Earnings ESP: Earnings ESP for Freeport is +2.21%. The Zacks Consensus Estimate for the second quarter is currently pegged at 38 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.Zacks Rank: Freeport currently carries a Zacks Rank #3.

What do the Estimates Indicate?

The Zacks Consensus Estimate for Freeport’s second-quarter consolidated revenues is currently pegged at $5,997 million, which suggests a year-over-year increase of 4.5%.

A Few Factors to Watch

Freeport’s second-quarter results are also expected to have been supported by the strength in copper prices. Copper prices have notched gains of roughly 10% so far this year, aided by supply concerns and signs of improving demand from top consumer China. A recovery in China’s industrial sector has led to an uptick in copper demand. Prices of copper were up around 9.5% in the second quarter. Our estimate for second-quarter average realized price for copper currently stands at $4.25, which indicates a year-over-year increase of 10.7% and a sequential rise of 7.9%.However, lower copper and gold sales volumes are expected to have impacted the company’s results. FCX, earlier this month, said that it expects to ship a portion of its second-quarter production in subsequent periods due to the delay in securing PT-FI's export license.

The company expects its consolidated sales for the second quarter to be roughly 5% lower than its April 2024 forecast of 975 million pounds of copper and around 30% lower than its prior view of 500,000 ounces of gold.Moreover, higher costs are likely to have weighed on Freeport’s performance in the quarter to be reported. The company now expects consolidated unit net cash costs for the second quarter to be about $1.77 per pound of copper, compared with its earlier expectation of $1.57 per pound. The expected increase is primarily due to decreased by-product credits as a result of shipment delays.

 

Freeport-McMoRan Inc. Price and EPS Surprise

 

Freeport-McMoRan Inc. Price and EPS Surprise

Freeport-McMoRan Inc. price-eps-surprise | Freeport-McMoRan Inc. Quote

 Stocks That Warrant a Look

Here are some companies in the basic materials space you may want to consider as our model shows they too have the right combination of elements to post an earnings beat this quarter:Agnico Eagle Mines Limited AEM, scheduled to release earnings on Jul 31, has an Earnings ESP of +5.93% and carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.The consensus estimate for AEM’s earnings for the second quarter is currently pegged at 82 cents.ATI Inc. ATI, slated to release earnings on Aug 6, has an Earnings ESP of +3.50% and carries a Zacks Rank #3 at present.The consensus mark for ATI’s second-quarter earnings is currently pegged at 58 cents.Kinross Gold Corporation KGC, scheduled to release second-quarter earnings on Jul 31, has an Earnings ESP of +18.85%.The Zacks Consensus Estimate for Kinross Gold's earnings for the second quarter is currently pegged at 12 cents. KGC currently carries a Zacks Rank #2. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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