SCCO Earnings Prediction
The chart below shows how SCCO performed 10 days before and after its earnings report, based on data from the past quarters. Typically, SCCO sees a +1.08% change in stock price 10 days leading up to the earnings, and a +3.07% change 10 days following the report. On the earnings day itself, the stock moves by -0.55%. This data can give you a slight idea of what to expect for the next quarter's release.
SCCO Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
3.12B
35.54%
19.94%
Gross Margin
53.23%
29.77%
12.23%
Operating Margin
51.54%
31.65%
12.63%
Net Margin
30.59%
28.05%
7.64%
EPS
1.21
70.42%
28.72%
No Data Available
SCCO Earnings Analysis
Southern Copper Corporation Corporation (SCCO.N) Earnings Conference Call
Positive
Southern Copper Corporation reported a significant increase in net sales of 36% in the second quarter of 2024 compared to the same period last year. This growth was primarily driven by higher sales volumes of copper, molybdenum, silver, and zinc, as well as increasing metal prices for all products.
Southern Copper Corporation's adjusted EBITDA for the second quarter of 2024 increased by 61%, reaching $1,797 million compared to $1,116 million in the same period of 2023. The adjusted EBITDA margin also improved to 58% from 49% in 2023, demonstrating strong operational performance and efficiency.
The company successfully ramped up the Buenavista Zinc concentrator, producing 23,300 tons of zinc and 5,500 tons of copper in the second quarter of 2024. The facility is performing as expected and is projected to reach an average production of 90,200 tons of zinc and 20,000 tons of copper per year over the next five years.
Southern Copper's ESG initiatives have been recognized with certifications for responsible production at the Buenavista mine in Sonora, Mexico. The company has also implemented sustainability practices, reduced CO2 emissions through wind energy, and invested in employee education and human development programs.
The company declared a quarterly cash dividend of $0.60 per share of common stock and a stock dividend of 0.0056 shares of common stock per share, payable on August 26th, 2024. This demonstrates Southern Copper's commitment to returning value to its shareholders and maintaining a strong financial position for future growth.
Negative
- Cash flow from operating activities in the six months of this year decreased by 18% compared to the previous year due to a significant increase in working capital, primarily driven by accounts receivable at Mexican operations.
- Significant capital investment program exceeding $15 billion, including various projects in Peru and Mexico, leading to a 31% increase in capital investments in the second quarter of 2024 compared to the previous year.
- Net sales grew by 36% in the second quarter of this year, but total operating costs and expenses also increased by $111 million or 8%, impacting overall financial performance.
- Operating cash cost before by-product credit increased by 2% to $2.15 per pound in the second quarter of 2024 compared to the first quarter, reflecting an increase in production costs and other expenses.
- Net income margin in the second quarter was 31%, a slight improvement from the previous year, but the increase was partially offset by higher operating costs related to sales volume, G&A, and exploration expenses.
