- Southern Copper‘s net income for Q3 was $896.7 million, marking a 45% increase year-over-year, and exceeding the estimate of $884.8 million.
- Earnings per share (EPS) rose to $1.15 compared to 80 cents year-over-year, slightly surpassing the estimate of $1.14.
- Sales reached $2.93 billion, up 17% from the previous year, but fell short of the $2.97 billion estimate.
- Adjusted EBITDA came in at $1.68 billion, which is a 31% increase year-over-year, just under the $1.7 billion forecast.
- The adjusted EBITDA margin improved to 57.5%, up from 51.5% in the prior year, slightly above the estimated 57.4%.
- Copper production increased by 12% year-over-year to 252,219 tonnes, surpassing the estimate of 243,090 tonnes.
- Zinc production saw a significant 91% increase year-over-year to 31,078 tonnes, although it was below the estimated 32,730 tonnes.
- Silver production rose to 5.34 million ounces, a 22% year-over-year increase, exceeding the estimate of 5.10 million ounces.
- Capital investments decreased by 6.2% year-over-year to $246.4 million.
- Operating income reached $1.45 billion, increasing by 36% year-over-year, but slightly below the estimate of $1.49 billion.
- The current market outlook includes 3 buy ratings, 5 hold ratings, and 13 sell ratings.
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Southern Copper on Smartkarma
On Smartkarma, a platform for independent investment research, Baptista Research has been covering Southern Copper Corporation closely. In their report titled “Southern Copper Corporation: Exploration and Development of New Deposits! – Major Drivers,” the analysts highlighted the company’s resilient performance in the second quarter of 2024. Despite a mix of positive and negative factors, Southern Copper saw a 15% surge in London Metal Exchange copper prices compared to the previous year, leading to a positive trend for the corporation. With copper sales accounting for 76% of their revenue in Q2 and an optimistic outlook for 2024, Southern Copper remains confident in the face of challenges.
Baptista Research also provided insights in another report titled “Southern Copper Corporation: What Is The Current Impact Of Copper Market Dynamics & Prices – Major Drivers.” In this analysis, the analysts commended Southern Copper‘s performance in 2023, despite some obstacles. The company achieved net sales of $9,896 million, albeit a 1.5% decrease from the previous year. This decline was offset by higher sales volumes of copper and molybdenum, increased prices of molybdenum and silver, and adjustments in metal prices. The reports from Baptista Research showcase a detailed examination of Southern Copper Corporation’s operations, market dynamics, and future prospects for investors to consider.
A look at Southern Copper Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.0 |
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
Based on the Smartkarma Smart Scores, Southern Copper Corporation seems to have a promising long-term outlook. With a Value score of 2, the company is considered to have potential for growth relative to its current stock price. A Dividend score of 3 indicates that the company may offer a moderate dividend yield to its investors, adding a layer of attractiveness for income-seeking investors. Likewise, a Growth score of 3 suggests that Southern Copper has opportunities for expansion and increasing its market presence over time.
Moreover, Southern Copper has shown Resilience with a score of 3, indicating its ability to weather economic downturns and maintain stable performance. The Momentum score of 4 reflects positive trends in the company’s stock price and indicates potential upward movement. Overall, with a diversified portfolio of mining operations in Peru and Mexico producing various metals, Southern Copper appears well-positioned for steady growth and stability in the long term.
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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