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Market Overview

Earnings Outlook For Freeport-McMoRan


Freeport-McMoRan (NYSE:FCX) announces its next round of earnings this Tuesday, January 26. Here is Benzinga's everything-that-matters guide for this Tuesday's Q4 earnings announcement.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Based on Freeport-McMoRan management projections, analysts predict EPS of $0.38 on revenue of $4.21 billion. Freeport-McMoRan EPS in the same period a year ago totaled $0.02. Sales were $3.91 billion.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

The Wall Street estimate would represent a 1800.0% increase in the company's earnings. Revenue would be up 7.65% from the year-ago period. Freeport-McMoRan's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020
EPS Estimate 0.20 -0.02 -0.18 0
EPS Actual 0.29 0.03 -0.16 0.02
Revenue Estimate 3.71 B 3.13 B 2.90 B 3.71 B
Revenue Actual 3.85 B 3.05 B 2.80 B 3.91 B

Stock Performance

Shares of Freeport-McMoRan were trading at $30.49 as of January 22. Over the last 52-week period, shares are up 167.61%. Given that these returns are generally positive, long-term shareholders are probably content going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Freeport-McMoRan is scheduled to hold the call at 10:00:00 ET and can be accessed here.


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Posted-In: BZI-EPEarnings