A Mixed Bag of Revenue, Earnings, and Analyst Reactions

82
1
A Mixed Bag of Revenue, Earnings, and Analyst Reactions

Freeport-McMoRan's Fourth-Quarter Results and Analyst Reactions

Analysts have been revising their price forecasts and ratings for Freeport-McMoRan (FCX) following the company's fourth-quarter FY24 results. While revenue fell short of expectations at $5.72 billion, adjusted EPS of $0.31 beat the consensus estimate.

For 2025, Freeport-McMoRan expects sales volumes of 4.0 billion pounds of copper, 1.6 million ounces of gold, and 88 million pounds of molybdenum.

Analysts from JP Morgan, Raymond James, and BMO Capital Markets have all adjusted their price forecasts and ratings for FCX. JP Morgan maintained a Neutral rating with a price target of $48, while Raymond James lowered their price target from $53 to $49 but kept an Outperform rating. BMO Capital Markets also lowered their price target, from $54 to $50, but maintained an Outperform rating. Jefferies downgraded the company from Buy to Hold and lowered their price target from $48 to $40.

Analysts noted several key factors influencing their revisions. JP Morgan highlighted the strong realized pricing and cost efficiencies that offset weaker copper and moly sales and higher delivery costs. Raymond James emphasized FCX's exposure to large, low-cost, long-life copper assets with significant gold production. BMO Capital Markets acknowledged the jurisdictional risk associated with Grasberg in Indonesia but noted that the 2018 transaction with the government has improved its risk profile.

Overall, analyst reactions to Freeport-McMoRan's fourth-quarter results were mixed. While some analysts lowered their price targets, others maintained their bullish outlook on the company. Investors can gain exposure to FCX through the Sprott Copper Miners ETF (COPP) and the Themes ETF Trust Themes Copper Miners ETF (COPA).