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Freeport Analyzes the Way Forward after Its 2Q16 Earnings

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Freeport-McMoRan’s 2Q16 financial results

Freeport-McMoRan (FCX) closed at $12.40 on August 2, 2016, falling ~0.6% from its previous day’s close.

2016 has been a remarkable year for Freeport-McMoRan. At the beginning of the year, few observers expected that Freeport would trade above $10. However, the company has been defying pessimism in the commodity space, moving to higher price levels.

Freeport released its 2Q16 earnings on July 26 before the Market opened. The company reported adjusted earnings per share of -$0.02, which was in line with consensus estimates.

However, the company missed consensus revenue estimates. After its earnings release, Freeport-McMoRan saw sharp negative price action in early trading, but the stock managed to close in positive territory.

You can read more about Freeport’s 2Q16 earnings in our series Freeport-McMoRan’s 2Q16 Earnings: What You Need to Know.

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Series overview

In this series, we’ll explore the way forward for Freeport following its 2Q16 earnings release. We’ll see how the company’s different business segments performed in the quarter. We’ll also see how the company looks placed in the third quarter. Finally, we’ll see how Freeport’s valuation multiples have changed since its 2Q16 earnings.

Let’s begin by analyzing how Wall Street analysts changed their ratings and target prices for Freeport after its 2Q16 earnings release.

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