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Freeport-McMoRan’s Q2 Earnings: What You Need to Know

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Jul. 27 2016, Published 10:26 a.m. ET

Freeport’s 2Q16 earnings

Freeport-McMoRan (FCX) released its 2Q16 earnings on July 26 before the markets opened. The company reported an adjusted loss per share of $0.02, which was in line with consensus estimates. After the earnings release, Freeport-McMoRan saw sharp negative price action in early trading, but the stock managed to close in positive territory.

The graph above shows the trend of Freeport’s actual versus consensus EPS (earnings per share).

Southern Copper (SCCO), which reported its 2Q16 earnings on July 25, posted EPS of $0.29. The company’s earnings fell year-over-year in the quarter despite a sharp increase in production on lower copper prices.

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Energy write-off

As expected, Freeport-McMoRan took another hit on its GAAP (generally accepted accounting principles) earnings due to the write-off of its energy assets. In 2Q16, the company took a write-off of $452 million on its earnings as it reduced the carrying value of its energy assets to reflect the current market scenario. With the 2Q16 write-off, Freeport has taken a total charge of $16.5 billion since the beginning of 2015.

Series overview

Freeport-McMoRan’s 2Q16 earnings attracted a lot of investor interest since the stock saw a big rally this year. Freeport’s 2Q16 earnings call answered a lot of questions for investors and analysts. In this series, we’ll explore Freeport’s 2Q16 earnings in detail. We’ll also cover the key points from the company’s 2Q16 earnings conference call. Let’s begin by looking at Freeport’s 2Q16 revenues in the next part of this series.

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