Yahoo Finance Ero Copper Corp. (ERO) Moves 5.9% Higher: Will This Strength Last?
Ero Copper Corp. (ERO) shares ended the last trading session 5.9% higher at $16.58. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 4.5% loss over the past four weeks.
Ero Copper recently announced better-than expected production results for 2022, aided by strong copper and gold grades across its operations. Recent efforts to incorporate Project Honeypot into Caraíba's life-of-mine production plan has helped it improve the copper grade profile, resulting in record copper production for 2022. At the Xavantina Operations, ERO delivered record quarterly and full-year production results with increases in gold production driven by higher processed tons and grades.
The Caraíba Operations produced 46,371 tons of copper in concentrate for 2022, surpassing the high-end of full-year guidance of 43,000 to 46,000 tons. The Xavantina Operations achieved record production of 42,669 ounces of gold for 2022, above the high-end of guidance of 39,000 to 42,000 ounces.
These upbeat numbers are expected to have offset the impact of low metal prices on the company’s fourth quarter results. ERO is scheduled to report its fourth quarter results on Mar 7, 2023.
This company is expected to post quarterly earnings of $0.29 per share in its upcoming report, which represents a year-over-year change of -55.4%. Revenues are expected to be $103 million, down 23.7% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Ero Copper Corp., the consensus EPS estimate for the quarter has been revised 18.9% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on ERO going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Ero Copper Corp. is a member of the Zacks Mining - Non Ferrous industry. One other stock in the same industry, Freeport-McMoRan (FCX), finished the last trading session 5% higher at $43. FCX has returned -8.2% over the past month.
For Freeport-McMoRan , the consensus EPS estimate for the upcoming report has changed +0.9% over the past month to $0.44. This represents a change of -58.9% from what the company reported a year ago. Freeport-McMoRan currently has a Zacks Rank of #3 (Hold).
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