Freeport-McMoRan’s 3Q16 earnings miss
Freeport-McMoRan (FCX) released its 3Q16 earnings before the market opened on October 25, 2016. The company reported adjusted EPS (earnings per share) of $0.13.
Analysts polled by Bloomberg expected the company to post adjusted EPS of $0.18 in the quarter.
However, the market ignored Freeport’s 3Q16 earnings miss, and the stock closed at $10.55 on October 25, rising 3.6% compared to its previous day’s close. Freeport’s upward price action despite its earnings miss could be partially attributed to the movement in copper prices.
The LME (London Metals Exchange) three-month copper contract rose almost 2% on October 25 to its highest price level since October 13. Most mining companies saw upward price action on October 25.
3Q16 earnings season
Investors looking for diversified exposure to the materials sector can consider the Materials Select Sector SPDR ETF (XLB). Alternatively, investors who want direct exposure to copper can consider the PowerShares DB Base Metals ETF (DBB). DBB invests one-third of its holdings in copper.
In this series, we’ll explore Freeport’s 3Q16 earnings in detail. We’ll also cover the key points from the company’s 3Q16 earnings conference call. Let’s begin by looking at Freeport’s 3Q16 revenue in the next part of this series.