Freeport-McMoRan (FCX), the leading US-based copper miner (DIA), fell 13.1% yesterday after its fourth-quarter earnings release. The stock has fallen 14.8% this week, but it’s still up 3.8% so far this year. 

Freeport missed consensus estimates for both its top and bottom line results in the fourth quarter.

Does Freeport-McMoRan Stock Look Attractive after the Sell-Off?

Fourth-quarter earnings

Freeport reported revenue of $3.7 billion in the fourth quarter compared to $4.9 billion in the third quarter and $5.0 billion in the fourth quarter of 2017. Freeport’s adjusted EBITDA also fell to $885 million in the quarter. It posted adjusted EBITDA of $1.8 billion in the previous quarter.

Lower-than-expected shipments were the key driver of Freeport’s fourth-quarter earnings miss. While its copper shipments were only marginally lower than what it guided for on its third-quarter earnings call, its gold shipments were almost 20% lower than its guidance. Freeport’s unit cash costs were also higher than its guidance, as its gold volumes were lower than expected.

In an earlier series, we had noted that Freeport’s margin of safety looks to be lower following its sharp rise from its December lows. Copper prices (SCCO) are still languishing below $6,000 per metric ton. The key question here is whether Freeport’s sell-off presents a buying opportunity. We’ll explore this prospect in detail in the coming articles.

Latest articles

After opening on a bearish note on Wednesday, Tesla (TSLA) was trading with 4.8% losses for the day, near $195.25 at 1:16 PM ET.

With voting conducted in seven phases panning six weeks, India’s (EPI) elections have been a grand affair—to say the least. Tomorrow is the day of the results.

Qualcomm (QCOM) stock fell more than 10% in the first half of trading on May 22 after it lost its licensing lawsuit with the US FTC (Federal Trade Commission).

Apple (AAPL) suffered a setback recently when the US Supreme Court allowed an antitrust lawsuit against the company to proceed.

Today doesn’t seem to be a good day for electric vehicle companies. Earlier today, NIO stock hit an all-time low of $4.00.

22 May

Cannabis Stocks Struggle to Find Direction


The cannabis sector has been struggling to find direction on May 22, with cannabis stocks trading on a largely mixed note in the first half.