Southern Copper (NYSE:SCCO) Posts Earnings Results, Beats Estimates By $0.04 EPS

Key Points

• Southern Copper beat expectations with $1.92 EPS (vs. $1.88 estimate) and reported revenue of $4.25 billion, with a net margin of 32.3% and ROE of 41.97%.
• The company announced a quarterly dividend of $1.00 per share (annualized $4.00, yield 2.4%) and a scheduled 1.01-for-1 stock split effective May 13.
• Despite the beats, shares traded down to $168.04 after the print and analysts show an average rating of "Reduce" with a $145.61 average price target; the stock trades at a P/E of 31.59 and a market cap of $137.64 billion.

Southern Copper (NYSE:SCCO - Get Free Report) announced its quarterly earnings data on Wednesday. The basic materials company reported $1.92 EPS for the quarter, beating analysts' consensus estimates of $1.88 by $0.04, FiscalAI reports. The business had revenue of $4.25 billion during the quarter, compared to analyst estimates of $3.96 billion. Southern Copper had a net margin of 32.30% and a return on equity of 41.97%.

Southern Copper Price Performance

Southern Copper stock traded down $2.45 during trading hours on Wednesday, hitting $168.04. 1,265,249 shares of the stock were exchanged, compared to its average volume of 2,002,298. The company has a debt-to-equity ratio of 0.61, a quick ratio of 3.40 and a current ratio of 3.89. The stock has a market capitalization of $137.64 billion, a P/E ratio of 31.59, a P/E/G ratio of 1.80 and a beta of 1.16. Southern Copper has a 12 month low of $86.59 and a 12 month high of $223.88. The business's 50-day moving average is $184.59 and its two-hundred day moving average is $164.39.

Southern Copper's stock is scheduled to split on the morning of Wednesday, May 13th. The 1.01-1 split was recently announced. The newly created shares will be issued to shareholders after the closing bell on Tuesday, May 12th.

Southern Copper Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, May 29th. Shareholders of record on Wednesday, May 13th will be paid a dividend of $1.00 per share. This represents a $4.00 annualized dividend and a yield of 2.4%. The ex-dividend date of this dividend is Wednesday, May 13th. Southern Copper's dividend payout ratio is currently 75.19%.

Analyst Ratings Changes

A number of research analysts have recently commented on SCCO shares. Wall Street Zen raised shares of Southern Copper from a "hold" rating to a "buy" rating in a research report on Saturday, March 21st. Wells Fargo & Company set a $186.00 price objective on shares of Southern Copper and gave the company an "equal weight" rating in a research report on Wednesday, April 15th. Bank of America lowered shares of Southern Copper from a "neutral" rating to an "underperform" rating and increased their price target for the stock from $162.00 to $175.00 in a research report on Thursday, February 26th. UBS Group dropped their price target on shares of Southern Copper from $150.00 to $140.00 and set a "sell" rating for the company in a research report on Friday, March 27th. Finally, Citigroup reissued a "sell" rating on shares of Southern Copper in a research report on Monday, January 12th. Two analysts have rated the stock with a Buy rating, four have assigned a Hold rating and seven have issued a Sell rating to the stock. Based on data from MarketBeat, the company currently has an average rating of "Reduce" and an average target price of $145.61.

Insider Activity

In other Southern Copper news, Director Lerdo De Tejada Leon Contreras sold 9,326 shares of the company's stock in a transaction dated Tuesday, February 3rd. The shares were sold at an average price of $209.56, for a total transaction of $1,954,344.91. Following the sale, the director directly owned 605 shares of the company's stock, valued at approximately $126,783.04. This represents a 93.91% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Bonilla Luis Miguel Palomino sold 193 shares of the company's stock in a transaction dated Friday, March 13th. The stock was sold at an average price of $174.60, for a total transaction of $33,697.80. Following the sale, the director directly owned 1,707 shares in the company, valued at $298,042.20. This represents a 10.16% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 9,526 shares of company stock worth $1,989,373 over the last ninety days. Insiders own 0.07% of the company's stock.

Institutional Trading of Southern Copper

Large investors have recently added to or reduced their stakes in the company. CIBC Private Wealth Group LLC grew its stake in Southern Copper by 17.2% during the fourth quarter. CIBC Private Wealth Group LLC now owns 1,299 shares of the basic materials company's stock worth $186,000 after buying an additional 191 shares during the last quarter. Canopy Partners LLC bought a new stake in shares of Southern Copper during the fourth quarter valued at approximately $177,000. Transamerica Financial Advisors LLC grew its stake in shares of Southern Copper by 91.2% during the second quarter. Transamerica Financial Advisors LLC now owns 1,486 shares of the basic materials company's stock valued at $150,000 after purchasing an additional 709 shares during the last quarter. Garton & Associates Financial Advisors LLC bought a new stake in shares of Southern Copper during the fourth quarter valued at approximately $134,000. Finally, Arax Advisory Partners grew its stake in shares of Southern Copper by 8.6% during the fourth quarter. Arax Advisory Partners now owns 930 shares of the basic materials company's stock valued at $133,000 after purchasing an additional 74 shares during the last quarter. 7.94% of the stock is owned by institutional investors.

Southern Copper Company Profile

Southern Copper Corporation NYSE: SCCO is a large, integrated copper producer whose operations span the full value chain from exploration and mining to smelting, refining and the sale of copper and other metal products. The company produces a range of copper products including copper concentrate and refined cathodes, and recovers valuable byproducts such as molybdenum, silver and zinc. Southern Copper concentrates on high-volume, long-life assets designed to support steady production and processing capabilities.

Southern Copper's operations are concentrated in Peru and Mexico, where it owns and operates multiple large-scale mining and processing facilities.

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