Freeport-McMoRan Inc. FCX, formerly Freeport-McMoRan Copper & Gold Inc., is a mining giant that is primarily engaged in mineral exploration and development, mining and milling of copper, gold, molybdenum and silver, as well as the smelting and refining of copper concentrates.

Freeport’s copper business remains affected by the sluggish global economy and supply related issues. The difficult market conditions in Europe are still affecting copper markets. The slowdown in China (a major market for copper) adds to the concern. However, Freeport is aggressive managing its costs and continues to progress with its expansion initiatives.

Let’s have a quick look at this mining behemoth’s fourth-quarter release.

Estimate Trend & Surprise History

Estimate for Freeport for the fourth quarter has moved from loss of 6 cents a month ago to a loss of 14 cents. Freeport has beaten estimates in the last one of the four quarters while missing in the other three.

Earnings  

Freeport reported adjusted loss of 2 cents per share for the quarter, narrower than the Zacks Consensus Estimate of a loss of 14 cents.

Revenues

Freeport posted revenues of $3,795 million, missing the Zacks Consensus Estimate of $4,003 million.

Key Stats/Developments to Note

In response to the weak oil and gas market environment, Freeport has announced additional initiatives to enhance its debt reduction plans. Freeport will continue to focus on cost and capital management and cash flow generation from its operations amid the prevailing weak commodity price environment. It is also taking further actions to increase its debt reduction plans and enhance shareholder value through asset sales and joint venture transactions.

Zacks Rank

Currently, Freeport has a Zacks Rank #3 (Hold), but that could change following its earnings report which was just released.

Market Reaction

Freeport’s shares were up around 9% in pre-market trading.  It would be interesting to see how the market reacts to the results during the trading session today.

Check back later for our full write up on Freeport’s earnings report!

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