Southern Copper SCCO 2025Q2 Earnings Preview Downside Risk Amid Analyst Sell Ratings and Lower EPS Expectations

Forward-Looking Analysis
Southern Copper is gearing up to release its Q2 2025 earnings, with analysts projecting an EPS of $1.07. This reflects a modest year-over-year increase from its trailing EPS of $4.57 to $4.66, yet a slight decrease is expected next year to $4.57. The company faces downside risks as analysts forecast a -5.91% decrease in stock price, with a consensus "Sell" rating and an average price target of $90.74. Revenue for the upcoming release is estimated at $2.887 billion, alongside an EPS estimate of $1.06. Previous quarters have shown mixed results, with Southern Copper missing its Q4 2024 EPS expectations but surpassing them in Q1 2025, indicating potential volatility in its upcoming performance.

Historical Performance Review
In Q1 2025, Southern Copper reported strong financial results, with revenue reaching $3.12 billion, net income at $949.10 million, and EPS recorded at $1.19. The company achieved a gross profit of $1.80 billion, underscoring robust operational efficiency. These figures marked a significant improvement compared to previous quarters, showcasing the company's capacity for revenue and profit growth.

Additional News
Southern Copper's recent stock performance has been under scrutiny, with its share price at $99.15 as of July 22, 2025. The company's trailing 12-month earnings were $3.6 billion, reflecting a 50.5% year-over-year growth. This growth was driven by increased sales volumes across key products, including copper, molybdenum, and silver. However, the market cap is currently pegged at $77.60 billion, with an enterprise value of $81.23 billion, indicating some investor caution despite strong past performance.

Summary & Outlook
Southern Copper's overall financial health appears solid, with notable revenue and net income growth in Q1 2025. Despite these strengths, the company faces potential downside risks due to analyst downgrades and lower EPS expectations for the upcoming quarters. The consensus "Sell" rating and projected stock price decrease suggest bearish sentiment. However, Southern Copper's capacity for growth remains intact, driven by increased sales volumes and operational efficiency. Investors should remain cautious, balancing past performance strengths with potential future challenges. The outlook leans towards a neutral stance, reflecting mixed signals from both financial metrics and market sentiment.