What To Expect From Freeport’s Q2 Results

Freeport-McMoRan (NYSE: FCX), one of the largest producers of copper, is expected to publish its Q2 2023 results around July 20th. We expect revenues to come in at about $5.83 billion, marking an increase of about 7% year-over-year, and about in line with consensus estimates. We project that earnings will stand at about $0.42 per share, marginally ahead of the consensus. So what are some of the trends that are likely to drive the company’s results? See our analysis of Freeport-McMoRan Earnings preview for more details.

Copper prices have been subdued this year, amid concerns about a U.S. recession, turmoil in the banking sector, as well as weaker-than-expected demand growth post the reopening of the Chinese economy following the easing of Covid-19 restrictions. Copper prices have declined from about $4.10 per pound in early April to levels of around $3.60 as of late June, although they have recovered a bit over the last two weeks. Manufacturing activity in the U.S. has also been sluggish, with the purchasing managers index for the month of June falling to 46.3 from 48.4 in May, deteriorating for seven of the past eight months. While these trends could impact price realizations, Freeport is likely to see copper shipments improve by about 28% sequentially, with gold and molybdenum volumes also poised to pick up. This could drive revenues higher. Separately, crude oil prices have cooled off a bit in recent months, and this could have a net positive impact on energy and input costs for copper players.