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Golf Clap for Southern Copper

Tuesday - 4/30/2013, 2:00am  ET

Southern Copper reported earnings on April 29. Here are the numbers you need to know.

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

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

Margins dropped across the board.

Revenue details
Southern Copper logged revenue of $1.62 billion. The six analysts polled by S&P Capital IQ wanted to see net sales of $1.64 billion on the same basis. GAAP reported sales were 10% lower than the prior-year quarter's $1.81 billion.

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 $0.59. The seven earnings estimates compiled by S&P Capital IQ predicted $0.59 per share. GAAP EPS of $0.59 for Q1 were 19% lower than the prior-year quarter's $0.73 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 55.2%, 480 basis points worse than the prior-year quarter. Operating margin was 47.4%, 650 basis points worse than the prior-year quarter. Net margin was 30.5%, 390 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $1.62 billion. On the bottom line, the average EPS estimate is $0.54.

Next year's average estimate for revenue is $6.60 billion. The average EPS estimate is $2.34.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 4,141 members out of 4,310 rating the stock outperform, and 169 members rating it underperform. Among 811 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 783 give Southern Copper a green thumbs-up, and 28 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Southern Copper is hold, with an average price target of $41.13.

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This article was originally published as Golf Clap for Southern Copperon Fool.com

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