Freeport-McMoRan Inc (NYSE: FCX) is off to an incredibly strong start to the trading session today, and for good reason. The company reported earnings, and while EPS came in slightly lower than expected, strong revenue is proving to be a source of excitement among investors. Of course, our partners at Trade Ideas were the first to alert us to the gains. At the moment (10:36), FCX is trading at $14.57 per share after a gain of $1.61 per share or 12.42% thus far today.
FCX Gains On Strong Earnings
As mentioned above, Freeport-McMoRan is having an incredibly strong day in the market today after releasing its results for the second quarter. While earnings slightly missed their mark, investors seem to have a keen focus on revenue, which proved to be positive. Here’s what we saw from the report…
- Earnings Per Share – When it comes to earnings per share, FCX didn’t have the best quarter in the world. During Q2, analysts expected that the company would generate $0.20 per share in earnings. However, the company missed the mark by $0.03, reporting earnings per share in the amount of $0.17.
- Revenue – Although revenue didn’t quite hit the mark for the second quarter, FCX did incredibly well when it came to top-line revenue. During the quarter, analysts expected that the mining company would generate revenue in the amount of $3.66 billion. However, the company actually generated revenue in the amount of $3.71 billion, topping expectations.
Another big factor here is copper prices. While the company did reduce its guidance with regard to the total amount of copper it plans on producing throughout the year, that is likely to largely be offset by an increase in prices. This increase is being caused by a mix between a weak USD and growing copper demand in China.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on FCX. In particular, we’re interested in following copper prices, as gains there seem to be the primary driver of gains in the stock to come. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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