Freeport-McMoRan Inc. Posts Mixed Q1 Earnings, Cuts Cash Flow Outlook

Freeport-McMoRan Inc. (NYSE: FCX) Tuesday posted mixed first quarter earnings results and cut its full-year cash flow outlook, as it wrangles with persistently low prices for the metals it mines.

Written by StockNews.com

The Phoenix-based copper producer reported Q1:

earnings per share (EPS) of $0.15, which was in-line with the Wall Street consensus estimate of $0.15.

revenues fell 5.3% from last year to $3.34 billion, missing analysts’ view for $3.51 billion.

consolidated sales totaled:

809 million pounds of copper,
182 thousand ounces of gold, and
24 million pounds of molybdenum.

For the full year, the company expects to sell about 3.9 billion pounds of copper, 1.9 million ounces of gold, and 93 million pounds of molybdenum.

Looking ahead:

FCX cut its 2017 cash flow guidance to $4.0 billion, down from $4.3 billion, citing weakening metal prices.

The company commented via press release:

“During the first quarter, we continued to strengthen our financial position despite the production interruptions experienced at our Indonesian operations.

Our strong focus on cost and capital discipline combined with improved market conditions for copper are producing solid results.

The resumption of concentrate exports in Indonesia and expected continued strong performance from our Americas operations will enable us to generate significant cash flows in the balance of the year to achieve our balance sheet objectives.

Our team is focused on reaching a positive near-term resolution to protect our past investments and support our long-term investment plans in Indonesia and in building long-term values in our large portfolio of high-quality copper assets in the Americas.”

…Year-to-date, FCX has declined -4.85%, versus a 6.82% rise in the benchmark S&P 500 index during the same period.

FCX currently has a StockNews.com POWR Rating of C (Neutral), and is ranked #13 of 33 stocks in the Industrial – Metals category.