Erste Group Bank Issues Optimistic Estimate for FCX Earnings

Key Points

• Erste Group Bank raised its FY2027 EPS forecast for Freeport-McMoRan to $4.32 from $4.00 and maintained a “Buy” rating, well above the current-year consensus estimate of $2.87.
• Freeport-McMoRan’s latest quarterly results exceeded expectations, with EPS of $0.74 versus the $0.62 consensus and revenue of $7.03 billion versus $6.62 billion, although revenue declined 7.3% year over year.
• Analyst sentiment remains broadly positive: FCX has an average “Moderate Buy” rating and a $76.22 average price target, while institutional investors own 80.77% of shares.

Freeport-McMoRan Inc. (NYSE:FCX - Free Report) - Research analysts at Erste Group Bank lifted their FY2027 earnings estimates for Freeport-McMoRan in a research report issued on Thursday, October 8th. Erste Group Bank analyst H. Engel now forecasts that the natural resource company will post earnings of $4.32 per share for the year, up from their prior forecast of $4.00. Erste Group Bank currently has a "Buy" rating on the stock. The consensus estimate for Freeport-McMoRan's current full-year earnings is $2.87 per share.

Freeport-McMoRan (NYSE:FCX - Get Free Report) last released its earnings results on Thursday, July 23rd. The natural resource company reported $0.74 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.62 by $0.12. The firm had revenue of $7.03 billion for the quarter, compared to the consensus estimate of $6.62 billion. Freeport-McMoRan had a return on equity of 10.63% and a net margin of 11.39%. The firm's revenue was down 7.3% on a year-over-year basis. During the same period in the prior year, the firm earned $0.54 EPS.

Several other research analysts have also recently issued reports on FCX. JPMorgan Chase & Co. raised their price objective on Freeport-McMoRan from $77.00 to $92.00 and gave the stock an "overweight" rating in a research note on Wednesday, October 7th. Stifel Nicolaus upped their target price on Freeport-McMoRan from $76.00 to $80.00 and gave the company a "buy" rating in a research report on Tuesday, July 21st. Wall Street Zen downgraded shares of Freeport-McMoRan from a "buy" rating to a "hold" rating in a report on Saturday, August 8th. Bank of America raised their price target on shares of Freeport-McMoRan from $74.00 to $80.00 and gave the stock a "buy" rating in a research report on Thursday, July 9th. Finally, Citigroup lifted their price objective on shares of Freeport-McMoRan from $66.00 to $84.00 and gave the company a "buy" rating in a research note on Monday, October 5th. One research analyst has rated the stock with a Strong Buy rating, twenty have issued a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $76.22.

Freeport-McMoRan Stock Performance

Shares of FCX opened at $72.47 on Wednesday. The company has a debt-to-equity ratio of 0.25, a quick ratio of 0.92 and a current ratio of 2.07. The stock has a 50-day moving average of $72.08 and a two-hundred day moving average of $66.41. The stock has a market cap of $104.07 billion, a P/E ratio of 35.70, a P/E/G ratio of 0.70 and a beta of 1.39. Freeport-McMoRan has a one year low of $38.54 and a one year high of $80.24.

Hedge Funds Weigh In On Freeport-McMoRan

Large investors have recently made changes to their positions in the company. First Citizens Bank & Trust Co. boosted its holdings in Freeport-McMoRan by 207.4% during the third quarter. First Citizens Bank & Trust Co. now owns 30,176 shares of the natural resource company's stock worth $2,112,000 after buying an additional 20,358 shares in the last quarter. Signal Advisors Wealth LLC grew its position in Freeport-McMoRan by 67.1% during the third quarter. Signal Advisors Wealth LLC now owns 6,185 shares of the natural resource company's stock valued at $433,000 after buying an additional 2,483 shares during the period. Sax Wealth Advisors LLC acquired a new stake in Freeport-McMoRan during the third quarter valued at $2,494,000. NorthCrest Asset Manangement LLC increased its holdings in Freeport-McMoRan by 0.5% in the third quarter. NorthCrest Asset Manangement LLC now owns 371,338 shares of the natural resource company's stock valued at $26,417,000 after buying an additional 1,800 shares in the last quarter. Finally, Oak Grove Capital LLC increased its holdings in Freeport-McMoRan by 492.3% in the third quarter. Oak Grove Capital LLC now owns 149,001 shares of the natural resource company's stock valued at $10,430,000 after buying an additional 123,843 shares in the last quarter. 80.77% of the stock is currently owned by institutional investors and hedge funds.

Insider Buying and Selling

In related news, CAO Ellie Mikes sold 4,773 shares of the firm's stock in a transaction dated Wednesday, August 5th. The stock was sold at an average price of $70.00, for a total transaction of $334,110.00. Following the sale, the chief accounting officer directly owned 36,000 shares of the company's stock, valued at $2,520,000. This trade represents a 11.71% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Lydia Kennard sold 3,798 shares of Freeport-McMoRan stock in a transaction that occurred on Thursday, August 27th. The shares were sold at an average price of $79.11, for a total value of $300,459.78. Following the transaction, the director owned 122,702 shares of the company's stock, valued at approximately $9,706,955.22. This represents a 3.00% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 110,398 shares of company stock valued at $8,387,271 in the last three months. 0.73% of the stock is currently owned by insiders.

Freeport-McMoRan Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Monday, November 2nd. Stockholders of record on Thursday, October 15th will be paid a $0.0750 dividend. The ex-dividend date is Thursday, October 15th. This represents a $0.30 dividend on an annualized basis and a dividend yield of 0.4%. Freeport-McMoRan's dividend payout ratio is presently 14.78%.

Freeport-McMoRan Company Profile

Freeport-McMoRan Inc NYSE: FCX is a leading international mining company focused primarily on the exploration, development and production of copper, gold and molybdenum. Copper is its principal product and is used in electrical systems, construction, transportation, renewable energy infrastructure and other industrial applications. The company also produces copper cathodes and concentrates, gold, molybdenum products and certain quantities of silver and other byproducts.

Freeport-McMoRan operates a portfolio of mining and processing assets in North America, South America and Indonesia.

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