Freeport-McMoRan’s Q2 2018 earnings beat
Freeport-McMoRan (FCX) released its second-quarter results yesterday along with Glencore (GLEN-L) and Antofagasta (ANTO), resulting in a busy day for copper investors. BHP (BHP) and Rio Tinto (RIO) released their production reports earlier this month.
In the second quarter, Freeport saw better-than-expected revenue of $5.17 billion, marking a YoY (year-over-year) rise from $3.71 billion and a sequential rise from $4.86 billion. Its Q2 2018 copper shipments were higher than expected, boosting its revenue.
In Q2 2018, Freeport’s adjusted EBITDA rose YoY and sequentially to $2.1 billion from $1.2 billion and $1.92 billion, respectively, surpassing analysts’ estimates. Freeport’s profits rose sequentially despite copper and gold prices falling due to higher copper and gold shipments. Freeport managed to reduce its unit cash costs sequentially in Q2 2018 to one cent lower than its guidance, despite gold production being lower than expected.
Freeport’s earnings beat was a highlight of its second-quarter results. However, despite the company’s better-than-expected earnings, its stock fell yesterday, which we’ll discuss next.