Freeport Beats the Street
The stock is up big today on results that actually saw the stock miss on the top line but beat on the bottom line, with $0.78 versus $0.71 for the street.
Copper was the shining star of the quarter with sales of 972,000,000 pounds versus company guidance of 930,000,000. Pricing underscores continued sluggishness in construction with pricing for Molybdenum tumbling from the year-ago period (molybdenum has the sixth highest melting point and is used in steel alloys and super alloys).
Average Realized Prices (y/y)
I'm also impressed with management's plans to use $4.6 billion in capital expenditures in 2013, however the company overpaying for Plains and McMoran could be a drag for a while.
Technically the stock makes a major breakout with close above $36.00, from there it has a rather smooth shot to rally to $42.00. Keep in mind the 52-week high is $49.00 and the all-time high is $60.00. There is potential for patient investors.
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