How did FCX's Q1 2024 earnings surprise the market?

Freeport-McMoRan (FCX) delivered a positive earnings surprise in Q1 2024, surpassing market expectations in both earnings per share (EPS) and revenue. 1. **Earnings Per Share (EPS) Surprise**: - Analysts had estimated an EPS of $0.23 for Q1 2024. - FCX reported an EPS of $0.27, which is a clear beat of expectations. - This represents a 17.4% increase year-over-year, indicating strong profitability for the period. 2. **Revenue Surprise**: - Estimated revenue for the quarter was $5.68 billion. - FCX reported actual revenue of $5.91 billion, surpassing estimates by 4.5%. - This reflects robust sales performance and operational efficiency. 3. **Key Drivers of Performance**: - Copper sales volumes were guided at 1 billion pounds, with gold sales at 575K oz and molybdenum sales at 20M lbs. - The company's operational cash flows were robust at $1.3 billion in Q4, contributing to $5.3 billion generated throughout the year. - Capital expenditures were significant, amounting to $1.4 billion in Q4, supporting long-term growth initiatives. 4. **Market Reaction and Outlook**: - Despite the earnings beat, FCX's stock has underperformed, losing about 2% since the last earnings report. - The company's solid financial performance and positive guidance for the next quarter could pave the way for a stock rebound. In conclusion, FCX's Q1 2024 earnings exceeded market expectations, driven by strong copper and gold sales, along with effective cost management. While the stock has recently underperformed, the company's robust financial performance and growth prospects suggest a potential for a positive market reaction in the near term.