- 1Q net income for Southern Copper was $736.0 million, which exceeded estimates and is down by -9.5% year-over-year.
- Earnings per share (EPS) were 95c, which was more than the estimated 76c.
- Sales were recorded at $2.60 billion, which is a -6.9% decrease from the previous year but still better than the $2.49 billion estimate.
- Adjusted Ebitda was reported at $1.42 billion, a decrease of -9.6% from the previous year, but surpassing the current estimate of $1.22 billion.
- The adjusted Ebitda margin came in at 54.5%, which is down from 56.1% year-over-year but still higher than the estimated 48.9%.
- Copper production was 240,679 tonnes, which is an increase of +7.7% year-over-year, exceeding the estimate of 233,167 tonnes.
- Zinc production came in at 26,366 tonnes, a whopping +75% increase from the previous year and beating the estimate of 22,221 tonnes.
- Silver production was recorded as 4.78 million ounces, an increase of +8.4% year-over-year. However, this is slightly lower than the estimates of 5.05 million ounces.
- Capital investments for this quarter were reported to be $213.8 million, which is a decrease of -10% from the previous year and lower than the estimated $289 million.
- Operating income was recorded as $1.19 billion, -12% down year-over-year but still better than the estimated $1.01 billion.
- The company has 2 buys, 4 holds and 12 sells rating from market analysts.
Southern Copper on Smartkarma
On Smartkarma, renowned analyst Joe Jasper has upgraded materials to market weight, highlighting a rotation into commodity sectors such as Southern Copper. The sentiment is bullish as the S&P 500 and Nasdaq 100 are holding above key support levels, indicating a continued bullish trend in the short term. Jasper emphasizes the importance of monitoring the market for potential signs of caution, with gap supports serving as crucial levels to watch for market control.
Additionally on Smartkarma, Baptista Research explores Southern Copper Corporation’s adaptation to shifting dynamics in the copper market. Despite a slight decline in net sales in 2023 compared to the previous year, the company remains optimistic due to increased sales volumes for key metals like copper and molybdenum, along with higher metal prices. Baptista Research‘s bullish sentiment is supported by Southern Copper‘s strong performance in the last quarter, showcasing resilience and adaptability in the face of challenges like declining ore grades.
A look at Southern Copper Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 4 | |
| Growth | 4 | |
| Resilience | 2 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Smartkarma Smart Scores indicate a promising long-term outlook for Southern Copper. With a solid Dividend score of 4 and Growth score of 4, the company is positioned well for potential steady returns and expansion. Momentum is also strong with a score of 5, highlighting the current positive trend in the company’s performance. However, Southern Copper scores lower on Value at 2, indicating that the stock may not be considered undervalued. Resilience, with a score of 2, suggests some vulnerability to market fluctuations.
Southern Copper Corporation, a mining company operating in Peru and Mexico, focuses on extracting copper, molybdenum, zinc, and precious metals. The company’s strong Dividend and Growth scores, along with high Momentum, hint at a promising future. Despite facing challenges in terms of Value and Resilience scores, Southern Copper‘s strategic positioning in the mining sector may drive long-term success.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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