Southern Copper (SCCO) is trending on Zacks.com, but its near-term outlook is uncertain. While the company reported a 20.1% year-over-year revenue increase and a 5.31% EPS surprise in the last quarter, consensus estimates point to a 13.9% decrease in EPS for the current quarter and a 6.9% decrease in revenue. The stock currently holds a Zacks Rank #4 (Sell), suggesting potential underperformance in the near term, and is trading at a premium to its peers.
Southern Copper Corporation (SCCO) has recently garnered significant investor attention, though its stock performance of +2.9% over the past month has lagged both the Zacks S&P 500 composite's +6.6% gain and its own Zacks Mining - Non Ferrous industry's +8.3% rise. While SCCO reported strong last-quarter results, with revenues up 20.1% year-over-year to $3.12 billion and EPS of $1.19 (a +5.31% surprise), near-term projections are less optimistic. Current quarter consensus estimates anticipate a 13.9% year-over-year decline in EPS to $1.05 and a 6.9% decrease in sales to $2.9 billion. Consensus earnings estimates for the current and next fiscal year indicate modest growth of +1.2% (to $4.38) and +5.4% (to $4.62) respectively, but these estimates have remained unchanged over the last 30 days. Projected revenue growth is +3.9% for the current fiscal year to $11.87 billion, followed by a -3.3% decline to $11.49 billion in the next fiscal year. Despite a history of surpassing consensus EPS and revenue estimates in three of the last four quarters, the lack of upward revisions in earnings estimates contributes to a Zacks Rank #4 (Sell). Furthermore, SCCO is graded D for Value, indicating it trades at a premium to its peers, reinforcing a cautious outlook.
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moderately negative
Sentiment Score
-0.45
Ticker Sentiment
