Freeport-McMoRan Inc (FCX) Stock Drops on Q4 EPS Miss

Freeport-McMoRan Inc (NYSE:FCX) stock was down on Wednesday following the release of its earnings report for the fourth quarter of 2016.

Freeport-McMoRan Inc, FCXDuring the fourth quarter of 2016, Freeport-McMoRan Inc reported earnings per share of 25 cents. This is up from its losses per share of 2 cents from the fourth quarter of 2015. However, it failed to meet Wall Street’s earnings per share estimate of 33 cents for the quarter.

Revenue reported by Freeport-McMoRan Inc in the fourth quarter of 2016 was $4.38 billion. FCX reported revenue of $3.52 billion during the same time last year. Analysts were expecting FCX to report revenue of $4.42 billion for the fourth quarter of the year.

Freeport-McMoRan Inc notes that during its fourth quarter of 2016, it completed its asset divestment program. It says that this generated $6.6 billion in aggregate proceeds. The program including selling its interest in TF Holdings Limited, as well as Deepwater Gulf of Mexico and California oil and gas properties.

Freeport-McMoRan Inc reported net income of $292 million for the fourth quarter of 2016. The natural resource company saw net losses of $4.08 billion during the same period from the year prior. Operating income for the quarter was $703 million. FCX reported an operating loss of $4.10 billion in the fourth quarter of 2015.

Freeport-McMoRan Inc also reported that it reduced its net debt by $8.4 billion during the full year of 2016. It also completed $1.5 billion in registered at-the-market sales of its common stock in November. These two actions are part of the company’s efforts to balance sheet strength.

FCX stock was down 6% as of Noon Wednesday, but is up 23% year-to-date.

Article printed from InvestorPlace Media,

©2022 InvestorPlace Media, LLC