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Freeport-McMoRan Copper & Gold Hits Estimates, But GAAP Results Lag Last Year's

Monday - 4/22/2013, 2:00am  ET

Freeport-McMoRan Copper & Gold reported earnings on April 18. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Freeport-McMoRan Copper & Gold met expectations on revenues and met expectations on earnings per share.

Compared to the prior-year quarter, revenue was unchanged. Non-GAAP earnings per share dropped significantly. GAAP earnings per share dropped significantly.

Margins dropped across the board.

Revenue details
Freeport-McMoRan Copper & Gold reported revenue of $4.58 billion. The 11 analysts polled by S&P Capital IQ looked for a top line of $4.64 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.73. The 17 earnings estimates compiled by S&P Capital IQ averaged $0.72 per share. Non-GAAP EPS of $0.73 for Q1 were 24% lower than the prior-year quarter's $0.96 per share. GAAP EPS of $0.68 for Q1 were 15% lower than the prior-year quarter's $0.80 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 40.7%, 660 basis points worse than the prior-year quarter. Operating margin was 29.9%, 780 basis points worse than the prior-year quarter. Net margin was 14.1%, 250 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $4.88 billion. On the bottom line, the average EPS estimate is $0.75.

Next year's average estimate for revenue is $21.91 billion. The average EPS estimate is $3.83.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 5,793 members out of 5,987 rating the stock outperform, and 194 members rating it underperform. Among 976 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 931 give Freeport-McMoRan Copper & Gold a green thumbs-up, and 45 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Freeport-McMoRan Copper & Gold is outperform, with an average price target of $40.00.

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This article was originally published as Freeport-McMoRan Copper & Gold Hits Estimates, But GAAP Results Lag Last Year'son Fool.com

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