3Q17 earnings beat
Freeport-McMoRan (FCX) released its 3Q17 earnings on October 25, posting revenues of ~$4.3 billion in 3Q17, compared with ~$3.7 billion in 2Q17 and ~$3.9 billion in 3Q16. Freeport reported adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) of $1.61 billion in 3Q17, compared with $1.17 billion in 2Q17.
You can read Why Markets Gave Freeport’s 3Q17 Earnings Beat a Miss for a broad overview of Freeport’s 3Q17 earnings.
According to the consensus estimates compiled by Thomson Reuters, Freeport has a mean one-year price target of $16.17, which represents 10.4% upside over its closing price on November 6. By contrast, the stock carried a one-year target price of $15.56 on October 24—one day before its earnings release.
Some analysts have revised their ratings of Freeport after its 3Q17 earnings release. On October 26, RBC raised Freeport’s price target from $14 to $16, though the next day, Berenberg lowered its price target from $12.30 to $12.15. On October 30, UBS raised Freeport’s target price from $13.5 to $14.
Given its consolidated ratings, analysts now have a consensus “hold” recommendation for Freeport stock amid its negotiations with the Indonesian government. Specifically, 52% of the analyst polled by Thomson Reuters on November 6 have rated Freeport as a “hold” or some equivalent, while 30% have a “buy” or higher rating, and the remaining analysts have issued a “sell.”
By comparison, Southern Copper (SCCO) has been rated a “sell” or lower by 42% of analysts.
In the next part, we’ll see how analysts are rating Glencore (GLEN-L).