Company Overview - Southern Copper Corporation (SCCO) is engaged in mining, exploring, smelting, and refining copper and other minerals, with exploration activities in Argentina, Chile, Ecuador, Mexico, and Peru [12]. Zacks Rank and Style Scores - SCCO currently holds a Zacks Rank of 3 (Hold) and has a VGM Score of B, indicating a moderate investment potential [12]. - The company has a Momentum Style Score of A, with shares increasing by 7% over the past four weeks, suggesting strong short-term performance [12][13]. Earnings Estimates - Two analysts have revised their earnings estimates upwards for fiscal 2025, with the Zacks Consensus Estimate increasing by $0.08 to $4.63 per share [13]. - SCCO has an average earnings surprise of 7.9%, indicating a history of exceeding earnings expectations [13].

Southern Copper (SCCO) closed the most recent trading day at $96.84, moving -0.88% from the previous trading session. This change lagged the S&P 500's 0.33% loss on the day. At the same time, the Dow lost 0.37%, and the tech-heavy Nasdaq lost 0.53%.Heading into today, shares of the miner had gained 4.77% over the past month, outpacing the Basic Materials sector's gain of 0.7% and the S&P 500's loss of 4.03% in that time.Investors will be eagerly watching for the performance of Southern Copper in its upcomin ...

In the latest market close, Southern Copper (SCCO) reached $100.41, with a +1.2% movement compared to the previous day. The stock outperformed the S&P 500, which registered a daily gain of 0.08%. Meanwhile, the Dow experienced a rise of 0.08%, and the technology-dominated Nasdaq saw an increase of 0.52%.Heading into today, shares of the miner had gained 1.43% over the past month, outpacing the Basic Materials sector's loss of 1.45% and the S&P 500's loss of 7.33% in that time.The investment community will b ...

It has been about a month since the last earnings report for Southern Copper (SCCO) . Shares have lost about 5.6% in that time frame, outperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is Southern Copper due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.How Have Estimates Been Moving Since Th ...

Financial Performance - In 2024, net sales reached a record high of $11,433.4 million, reflecting a 15.5% increase compared to 2023, driven by higher prices for copper (+7.8%), silver (+20.7%), and zinc (+5.0%), along with increased sales volumes of copper (+5.5%), molybdenum (+7.9%), silver (+15.7%), and zinc (+44.6%) [660]. - Operating income for 2024 was $5,554.7 million, an increase of 32.5% compared to 2023, while net income attributable to the company was $3,376.8 million, up 39.2% from the previous year [659]. - The company reported a 10.5% increase in copper sales volumes, alongside a 33.4% increase in molybdenum sales volumes in 2024 compared to 2023 [675]. - Net income for 2024 was $3,388.6 million, representing 76.6% of the net operating cash flow [690]. - Operating costs and expenses rose to $5,878.7 million in 2024, an increase of $175.2 million from $5,703.5 million in 2023, primarily due to higher labor costs and repair materials [666]. Employee Development and Safety - In 2024, the company invested over $4.8 million in employee development, delivering more than 646,000 hours of formal instruction [41]. - The company’s retention rate is around 90%, with more than 48% of positions filled by internal employees [53]. - Southern Copper Corporation achieved a 28% reduction in employee accidents involving lost-time injuries in 2024 compared to 2023 [610]. - The company has implemented a Behavioral Safety Program to promote safe practices among employees, aiming to reduce accident rates [619]. Community and Environmental Initiatives - The company has made significant expenditures for community programs as part of its corporate social responsibility policy, promoting sustainable development in local areas [56]. - Renewable energy consumption increased from 23% to 36% in 2023, surpassing the 2027 target of 25% [635]. - The Fenicias wind park is expected to reduce CO2 emissions by approximately 250,000 tonnes per year, equivalent to 7% of the company's carbon footprint [634]. - The company is committed to improving biodiversity, receiving certification for efforts to prevent the extinction of the Mexican grey wolf [625]. Capital Investments and Projects - Capital investments in 2024 totaled $1,027.3 million, with $756.0 million allocated to Mexican operations and $271.3 million to Peruvian operations [690]. - The Tia Maria project in Arequipa, Peru, has a budget set at $1,802 million and is expected to generate $17.5 billion in exports and contribute $3.4 billion in taxes and royalties over the first 20 years of operation [598]. - The company plans to invest more than $600 million in 2025 for modernization and improvements in water usage and tailings management [592]. - The company has engaged in project development and environmental activities for the El Pilar project, which is expected to have a mine life of 13 years [595]. Market and Pricing Trends - The average per pound COMEX copper price over the last 5 years was $3.83, while the average LME copper price was $3.81 [37]. - The average copper price (LME) in 2024 was $4.15 per pound, a 7.8% increase from 2023, while the average molybdenum price decreased by 10.6% to $21.21 per pound [661]. - The average price per pound of zinc over the last 5 years was $1.29 [39]. Labor Relations - As of December 31, 2024, the company had 16,133 employees, with approximately 66% covered by collective labor agreements [40]. - In 2024, the company signed long-term extensions of collective bargaining agreements with five unions, lasting six years, and made a signing payment totaling approximately $62 million to over 2,000 workers [67]. - As of December 31, 2024, 56.9% of the 5,120 employees in Peru were unionized, with six separate unions representing them [64]. Financial Management and Debt - Total debt as of December 31, 2024, was $6,258.3 million, slightly up from $6,254.6 million in 2023, with a fixed interest rate of 5.82% [698]. - The company expects to meet cash requirements for 2025 and beyond from cash on hand and internally generated funds, with the ability to access additional external financing if needed [694]. - The company received orders for $3.5 billion during a recent marketing effort, indicating strong demand for its debt offerings [700].

Company Performance - Southern Copper (SCCO) closed at $88.93, down 1.72% from the previous trading session, underperforming the S&P 500 which gained 1.59% [1] - Over the past month, shares of Southern Copper have decreased by 2.33%, compared to a loss of 0.27% in the Basic Materials sector and a loss of 2.42% in the S&P 500 [1] Upcoming Financial Results - Southern Copper is expected to report an EPS of $1.26, reflecting a growth of 34.04% year-over-year [2] - Revenue is projected to be $2.68 billion, indicating a 3.22% increase compared to the same quarter last year [2] Full Year Projections - For the full year, earnings are estimated at $4.66 per share and revenue at $11.55 billion, representing increases of 7.62% and 1.03% respectively from the prior year [3] Analyst Estimates and Market Sentiment - Recent modifications to analyst estimates for Southern Copper suggest a changing business landscape, with positive revisions indicating optimism about the company's outlook [4] - The Zacks Rank system, which reflects these estimate changes, currently rates Southern Copper at 3 (Hold) [6] Valuation Metrics - Southern Copper has a Forward P/E ratio of 19.41, which is higher than the industry average of 15.66 [7] - The company holds a PEG ratio of 1.76, compared to the Mining - Non Ferrous industry's average PEG ratio of 0.79 [7] Industry Context - The Mining - Non Ferrous industry, part of the Basic Materials sector, has a Zacks Industry Rank of 164, placing it in the bottom 35% of over 250 industries [8]

Core Insights - Zacks Premium provides various tools to enhance stock market investment confidence and knowledge [1] - The Zacks Style Scores offer a unique rating system for stocks based on value, growth, and momentum [3][4] Zacks Style Scores - The Style Scores categorize stocks into four types: Value Score, Growth Score, Momentum Score, and VGM Score [4][5][6][7] - Value Score identifies attractive stocks using ratios like P/E and Price/Sales [4] - Growth Score focuses on a company's financial health and future outlook [5] - Momentum Score helps investors capitalize on price trends [6] - VGM Score combines all three styles to find stocks with the best overall potential [7] Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to assist in stock selection [8] - Stocks rated 1 (Strong Buy) have historically outperformed the S&P 500 with an average annual return of +25.41% since 1988 [9] - A total of over 800 stocks are rated, making it essential to use Style Scores for optimal selection [10] Stock Example: Southern Copper Corporation (SCCO) - Southern Copper Corporation is engaged in mining and refining copper and other minerals across several countries [12] - SCCO holds a 3 (Hold) rating with a VGM Score of B and a Momentum Style Score of B [12] - Recent upward revisions in earnings estimates indicate a consensus estimate of $4.62 per share for fiscal 2025, with an average earnings surprise of 7.9% [13]

Core Insights - Southern Copper (SCCO) reported quarterly earnings of $1.01 per share, slightly missing the Zacks Consensus Estimate of $1.02 per share, but showing an increase from $0.57 per share a year ago, resulting in an earnings surprise of -0.98% [1] - The company posted revenues of $2.78 billion for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 0.16% and increasing from $2.3 billion year-over-year [2] - Southern Copper has outperformed consensus EPS estimates three times over the last four quarters, indicating a generally positive trend in earnings performance [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.26 on revenues of $2.77 billion, while for the current fiscal year, the estimate is $4.63 on revenues of $11.61 billion [7] - The estimate revisions trend for Southern Copper is mixed, leading to a Zacks Rank 3 (Hold), suggesting the stock is expected to perform in line with the market in the near future [6] Industry Context - The Mining - Non Ferrous industry, to which Southern Copper belongs, is currently ranked in the bottom 37% of over 250 Zacks industries, indicating potential challenges for stocks in this sector [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Southern Copper's stock performance [5]

Financial Performance - 4Q24 net sales reached $2,784.3 million, a 21.3% increase from 4Q23, driven by higher sales volumes for copper (+5.4%), zinc (+59.4%), and silver (+21.6%) [1] - 2024 net sales hit a record high of $11,433.4 million, up 15.5% from 2023, primarily due to increased sales volumes for copper (+5.5%), molybdenum (+7.9%), zinc (+44.6%), and silver (+15.7%) [1] - 4Q24 net income was $793.9 million, a 78.4% increase compared to $445.0 million in 4Q23, with a net income margin of 28.5% [1] - 2024 net income totaled $3,376.8 million, a 39.2% increase from 2023, with a net income margin of 29.5% [1] - 4Q24 adjusted EBITDA was $1,506.7 million, a 42.7% increase from $1,055.5 million in 4Q23, with an adjusted EBITDA margin of 54.1% [1] - 2024 adjusted EBITDA reached $6,406.1 million, up 27.4% from 2023, with an adjusted EBITDA margin of 56.0% [1] - Operating income for Q4 2024 was $1,307.3 million, a 50.5% increase from $868.7 million in Q4 2023 [41] - Net income attributable to Southern Copper Corporation for 2024 was $3,376.8 million, a 39.2% increase from $2,425.2 million in 2023 [41] Production and Operations - 2024 copper production increased by 6.9% YoY to 973,851 tons, with significant growth in Peruvian (+10.7%) and Mexican (+4.3%) operations [2] - Mined zinc production surged 154.9% in 4Q24, attributed to the full ramp-up of the Buenavista Zinc concentrator [2] - Total copper production in 2024 was 977,200 tons, up 6.6% from 916,419 tons in 2023, with mined copper increasing by 6.9% to 973,851 tons [39] - The company reported a total of 2,057.7 million pounds of copper produced in Year 2024, an increase from 1,935.4 million pounds in Year 2023 [59] Costs and Expenses - Operating cash cost per pound of copper decreased to $0.96 in 4Q24, down 22.5% from $1.25 in 4Q23, and $0.89 for the full year 2024, a 13.9% reduction from 2023 [5] - Operating cash cost before by-product revenues for Q4 2024 was $1,158.9 million, up from $1,114.7 million in Q4 2023, indicating a 4.0% increase [59] - Year 2024 operating cash cost before by-product revenues totaled $4,389.5 million, up from $4,235.0 million in Year 2023, reflecting a 3.6% increase [59] - Selling, general and administrative expenses for Q4 2024 were $34.5 million, slightly higher than $33.1 million in Q4 2023, reflecting a 4.2% increase [59] Investments and Projects - The company plans to invest over $600 million in 2025 for modernization and improvements in water usage and tailings management in its Mexican operations [13] - The Michiquillay project in Peru is expected to require an investment of approximately $2.5 billion and is projected to produce 225,000 tons of copper annually starting in 2032 [25] Sustainability and Community Impact - The company achieved a 28% reduction in employee accidents involving lost-time injuries in 2024 compared to previous years [28] - The Tía María project has led to a 14% increase in crop productivity, benefiting approximately 95% of local families [29] - Southern Copper's sustainability rating improved by 9 points year-over-year, placing it among the top 10 mining companies for sustainability in 2024 [27] Financial Position - As of December 31, 2024, total assets increased to $18,713.5 million, up from $16,725.3 million in 2023, representing a growth of 11.9% [42] - Cash and cash equivalents rose significantly to $3,258.1 million in 2024 from $1,151.5 million in 2023, an increase of 183.5% [42] - Total stockholders' equity increased to $9,238.1 million in 2024, up from $7,481.2 million in 2023, a growth of 23.5% [42] - The company generated $4,421.7 million in net cash from operating activities for the year 2024, compared to $3,573.1 million in 2023, an increase of 23.7% [44] Dividends - Dividends paid in 2024 amounted to $1,637.3 million, a decrease from $3,092.4 million in 2023, indicating a reduction of 47.0% [44]

Group 1 - Southern Copper (SCCO) closed at $91.62, down 1.11% from the previous trading session, underperforming the S&P 500's loss of 0.51% [1] - Over the past month, shares of Southern Copper gained 0.53%, lagging behind the Basic Materials sector's gain of 4.34% and the S&P 500's gain of 2.87% [1] Group 2 - Southern Copper is forecasted to report an EPS of $1.02, reflecting a 78.95% increase from the same quarter last year, with revenue expected to be $2.78 billion, a 21.1% increase year-over-year [2] - Recent changes to analyst estimates for Southern Copper indicate positive sentiment regarding the company's business and profitability [3] Group 3 - The Zacks Rank system, which includes estimate changes, has a history of outperforming, with 1 stocks returning an average annual gain of +25% since 1988; Southern Copper currently holds a Zacks Rank of 3 (Hold) [5] - The consensus EPS projection for Southern Copper has increased by 0.46% in the past 30 days [5] Group 4 - Southern Copper has a Forward P/E ratio of 20.03, which is in line with the industry average [6] - The company has a PEG ratio of 1.81, compared to the Mining - Non Ferrous industry's average PEG ratio of 0.87 [7] Group 5 - The Mining - Non Ferrous industry, part of the Basic Materials sector, holds a Zacks Industry Rank of 165, placing it in the bottom 35% of over 250 industries [7][8] - The Zacks Industry Rank indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]