TLDR
- Southern Copper (SCCO) beat Q1 2025 earnings and revenue estimates.
- Current stock price: $94.28, down 1.62% at April 25 close.
- Reported net income of $945.9 million and revenue of $3.12 billion.
- Dividend raised to $2.80 annualized, with a 2.97% yield.
- Management maintains a positive outlook despite mixed estimate revisions.
Southern Copper Corporation (NYSE: SCCO) closed at $94.28 on April 25, 2025, down 1.62% for the day. However, the company delivered a strong first-quarter performance, reporting earnings of $1.19 per share, beating the Zacks Consensus Estimate of $1.13. This marks a 5.31% positive earnings surprise and a notable improvement from $0.94 per share in the same quarter last year. Revenues also impressed, coming in at $3.12 billion, surpassing expectations by 4.67%.
The miner has now beaten earnings estimates three times over the past four quarters, underscoring solid operational momentum. Southern Copper’s next earnings date is set between July 17 and July 21, 2025.
Financial Highlights
Southern Copper maintained strong profitability, with a net income of $945.9 million and a robust profit margin of 30%. Return on assets reached 20.16%, while return on equity stood out at 41.74%, showcasing effective capital utilization.
The company’s trailing twelve-month revenue totaled $11.96 billion, supporting a diluted EPS of $4.30. Southern Copper also boasts a strong liquidity position, holding $4.33 billion in total cash as of the most recent quarter.
However, the miner’s total debt-to-equity ratio stands at 81.82%, indicating a relatively high leverage level compared to some peers. Levered free cash flow over the trailing twelve months came in at a healthy $3.38 billion.
Dividend Growth and Outlook
Southern Copper offers an attractive forward dividend of $2.80, yielding 2.97%, with an ex-dividend date of May 2, 2025. This payout reflects the company’s commitment to returning value to shareholders amid strong free cash flow generation.
Looking forward, management’s commentary during the earnings call pointed to cautious optimism. The current consensus for the next quarter projects earnings of $1.14 per share on revenues of $2.98 billion. For the full fiscal year, consensus estimates expect $4.47 in EPS on $11.91 billion in revenues.
Though the outlook is positive, the earnings estimate trend ahead of the release was mixed, leading to Southern Copper maintaining a Zacks Rank #3 (Hold). This suggests that the stock is expected to perform roughly in line with the market over the near term.
Industry Positioning
Southern Copper operates in the Mining – Non Ferrous sector, which currently ranks in the top 24% of over 250 industries tracked by Zacks. Historically, industries in the top 50% tend to outperform those in the bottom half by a margin of more than 2 to 1.
With copper prices tied closely to global economic conditions, Southern Copper remains well-positioned, especially as infrastructure spending and green energy initiatives continue to drive long-term demand.
Conclusion
Southern Copper’s strong Q1 results, solid dividend, and resilient financial profile make it a noteworthy player in the mining sector. Although near-term stock movements will depend on revised earnings expectations and macroeconomic trends, the company’s profitability and industry standing suggest it remains a solid hold for investors looking for exposure https://coincentral.com/asml-asml-stock-solid-q1-results-with-caution-over-tariff-uncertainty/to non-ferrous metals.