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

Key Points

• Southern Copper beat earnings expectations, reporting quarterly EPS of $2.01 versus the $1.97 consensus. Revenue came in at $4.29 billion, slightly below analyst estimates of $4.32 billion.
• The stock was trading up 7.3% after the earnings release, and the company remains financially strong with a 34.13% net margin and 45.63% return on equity.
• Southern Copper raised its quarterly dividend to $1.10 per share from $1.00, and it also announced a near-1-for-1 stock split set for August 11.

Southern Copper (NYSE:SCCO - Get Free Report) posted its quarterly earnings data on Wednesday. The basic materials company reported $2.01 EPS for the quarter, beating the consensus estimate of $1.97 by $0.04, FiscalAI reports. The business had revenue of $4.29 billion during the quarter, compared to analyst estimates of $4.32 billion. Southern Copper had a net margin of 34.13% and a return on equity of 45.63%.

Southern Copper Trading Up 7.3%

Shares of NYSE:SCCO opened at $187.92 on Wednesday. Southern Copper has a 52 week low of $88.73 and a 52 week high of $223.88. The company's 50 day moving average is $180.76 and its two-hundred day moving average is $182.80. The company has a current ratio of 4.38, a quick ratio of 3.89 and a debt-to-equity ratio of 0.57. The company has a market cap of $155.24 billion, a PE ratio of 31.06, a P/E/G ratio of 1.50 and a beta of 1.11.

Southern Copper's stock is set to split on Tuesday, August 11th. The 1.012-1 split was recently announced. The newly minted shares will be issued to shareholders after the closing bell on Monday, August 10th.

Southern Copper Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, August 27th. Shareholders of record on Tuesday, August 11th will be given a $1.10 dividend. The ex-dividend date of this dividend is Tuesday, August 11th. This represents a $4.40 dividend on an annualized basis and a dividend yield of 2.3%. This is a boost from Southern Copper's previous quarterly dividend of $1.00. Southern Copper's payout ratio is currently 72.73%.

Insider Activity

In related news, Director Bonilla Luis Miguel Palomino sold 200 shares of the business's stock in a transaction on Thursday, May 21st. The shares were sold at an average price of $177.82, for a total transaction of $35,564.00. Following the completion of the transaction, the director owned 1,807 shares in the company, valued at approximately $321,320.74. The trade was a 9.97% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Over the last three months, insiders have sold 404 shares of company stock worth $74,108. 0.07% of the stock is currently owned by insiders.

Institutional Trading of Southern Copper

Hedge funds and other institutional investors have recently bought and sold shares of the business. Baird Financial Group Inc. raised its position in shares of Southern Copper by 17.7% during the 2nd quarter. Baird Financial Group Inc. now owns 4,864 shares of the basic materials company's stock worth $492,000 after acquiring an additional 731 shares in the last quarter. Fortis Capital Management LLC lifted its stake in Southern Copper by 5.6% during the fourth quarter. Fortis Capital Management LLC now owns 2,621 shares of the basic materials company's stock worth $376,000 after purchasing an additional 140 shares during the last quarter. Brooklyn Investment Group boosted its holdings in Southern Copper by 18.8% in the third quarter. Brooklyn Investment Group now owns 2,848 shares of the basic materials company's stock valued at $346,000 after purchasing an additional 450 shares in the last quarter. Meeder Advisory Services Inc. boosted its holdings in Southern Copper by 9.7% in the fourth quarter. Meeder Advisory Services Inc. now owns 2,360 shares of the basic materials company's stock valued at $339,000 after purchasing an additional 209 shares in the last quarter. Finally, Smartleaf Asset Management LLC increased its stake in Southern Copper by 83.6% in the fourth quarter. Smartleaf Asset Management LLC now owns 1,660 shares of the basic materials company's stock valued at $242,000 after purchasing an additional 756 shares during the last quarter. 7.94% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

A number of equities research analysts have issued reports on the stock. Scotiabank reiterated an "underperform" rating and set a $140.00 target price (up from $135.00) on shares of Southern Copper in a report on Monday, June 15th. Zacks Research upgraded shares of Southern Copper from a "hold" rating to a "strong-buy" rating in a research note on Thursday, July 9th. Morgan Stanley upped their price objective on Southern Copper from $146.00 to $158.00 and gave the stock an "underweight" rating in a research report on Wednesday, July 8th. Wall Street Zen upgraded Southern Copper from a "hold" rating to a "buy" rating in a research note on Saturday, June 27th. Finally, Weiss Ratings lowered Southern Copper from a "buy (b)" rating to a "buy (b-)" rating in a report on Wednesday, July 8th. One research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, three have issued a Hold rating and seven have given a Sell rating to the company. According to data from MarketBeat, the company presently has a consensus rating of "Reduce" and an average price target of $148.10.

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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