Freeport-McMoran (FCX) Misses Q1 EPS by 8c, Miss on Revenues

April 24, 2018 8:02 AM EDT

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Freeport-McMoran (NYSE: FCX) reported Q1 EPS of $0.48, $0.08 worse than the analyst estimate of $0.56. Revenue for the quarter came in at $4.87 billion versus the consensus estimate of $4.93 billion.

  • Net income attributable to common stock totaled $692 million, $0.47 per share, for first-quarter 2018. After adjusting for net gains of $13 million, $0.01 per share, first-quarter 2018 adjusted net income attributable to common stock totaled $679 million, $0.46 per share.
  • Consolidated sales totaled 993 million pounds of copper, 610 thousand ounces of gold and 24 million pounds of molybdenum for first-quarter 2018.
  • Consolidated sales for the year 2018 are expected to approximate 3.8 billion pounds of copper, 2.4 million ounces of gold and 95 million pounds of molybdenum, including 970 million pounds of copper, 700 thousand ounces of gold and 24 million pounds of molybdenum for second-quarter 2018.
  • Average realized prices for first-quarter 2018 were $3.11 per pound for copper, $1,312 per ounce for gold and $11.95 per pound for molybdenum.
  • Average unit net cash costs for first-quarter 2018 were $0.98 per pound of copper and are expected to average $1.01 per pound of copper for the year 2018.
  • Operating cash flows totaled $1.4 billion (net of $21 million in working capital uses and timing of other tax payments) for first-quarter 2018. Based on current sales volume and cost estimates, and assuming average prices of $3.15 per pound for copper, $1,300 per ounce for gold and $12.00 per pound for molybdenum for the remainder of 2018, operating cash flows are expected to approximate $5.6 billion (including $0.2 billion in working capital sources and timing of other tax payments) for the year 2018.
  • Capital expenditures for first-quarter 2018 totaled $402 million (including approximately $250 million for major mining projects). Capital expenditures for the year 2018 are expected to approximate $2.0 billion, including $1.1 billion for major mining projects primarily associated with underground development activities in the Grasberg minerals district in Indonesia and development of the Lone Star oxide project in Arizona.
  • During first-quarter 2018, FCX repaid borrowings totaling $1.5 billion, and in April 2018, FCX repaid $454 million in debt, consisting of the redemption of $404 million of senior notes due 2022 and $50 million of senior notes due 2023.
  • At March 31, 2018, consolidated debt totaled $11.6 billion and consolidated cash totaled $3.7 billion. FCX had no borrowings and $3.5 billion available under its revolving credit facility at March 31, 2018.
  • In February 2018, FCX\'s Board of Directors (the Board) reinstated a cash dividend on FCX\'s common stock. On March 28, 2018, FCX declared a quarterly cash dividend of $0.05 per share, which will be paid on May 1, 2018.

For earnings history and earnings-related data on Freeport-McMoran (FCX) click here.



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