Why Has Southern Copper (SCCO) Increased by 3.7% Following Its Most Recent Earnings Announcement?

Southern Copper (SCCO) Stock Performance Since Last Earnings

In the month following its previous earnings announcement, Southern Copper (SCCO) shares have climbed approximately 3.7%, outpacing the S&P 500 index.

As the next earnings report approaches, investors are wondering whether this upward momentum will persist or if a correction is on the horizon. To better understand the factors influencing SCCO’s recent performance, let’s review the highlights from its latest earnings release and examine how the market has responded.

Q3 2025 Results: Earnings and Revenue Surpass Expectations

For the third quarter of 2025, Southern Copper posted earnings of $1.35 per share, exceeding the Zacks Consensus Estimate of $1.25. This result reflects a 21% increase compared to the same period last year.

Growth in Sales and Margins

Quarterly revenue reached $3.38 billion, marking a 15% year-over-year rise and topping analyst expectations of $3.16 billion. While higher sales volumes of silver, zinc, and molybdenum, along with stronger metal prices, contributed to this growth, these gains were partially offset by reduced copper sales volumes.

The cost of sales increased by 11% to $1.36 billion. Operating profit improved to $1.77 billion, a 22% jump from the previous year, and the operating margin expanded to 52.4% from 49.5% a year earlier.

Adjusted EBITDA came in at $1.97 billion, up 17.3% year over year, with the adjusted EBITDA margin rising to 58.5% from 57.5% in the prior year’s quarter.

Production Overview by Metal

• Copper: Output totaled 234,892 tons, a 6.9% decrease from the previous year, mainly due to lower production at the Toquepala and Cuajone mines in Peru and reduced ore grades at Mexico’s Buenavista mine. Copper sales fell 3.6% to 234,300 tons.
• Molybdenum: Production reached 7,874 tons, up 8.3% year over year, driven by higher output at La Caridad and Toquepala, though partially offset by declines at Buenavista and Cuajone. Sales increased 7.9% to 7,908 tons.
• Zinc: Zinc production surged 46% to 45,482 tons, largely due to the Buenavista zinc concentrator. Sales rose 7% to 40,081 tons.
• Silver: Silver output improved 16.4% to 6.21 million ounces, thanks to stronger performance at Mexican operations, despite lower production in Peru. Silver sales jumped 21.9% to 6.32 million ounces.

Cash Flow and Financial Position

Southern Copper generated $1.56 billion in net cash from operating activities during the third quarter, up from $1.44 billion a year earlier. The company ended the quarter with $3.95 billion in cash and equivalents, compared to $3.26 billion at the close of 2024. Long-term debt stood at $6.75 billion as of September 30, 2025, up from $5.76 billion at the end of 2024.

2025 Outlook

• Copper production is projected at approximately 958,800 tons, a 2% decrease from the prior year.
• Zinc output is expected to reach 174,700 tons, representing a 34% increase, driven by the Buenavista zinc concentrator.
• Silver production is forecasted at around 23 million ounces, up 10% year over year.
• Molybdenum output is anticipated to total 30,000 tons, a 4% rise from 2024.

Recent Estimate Revisions

Over the past month, analyst estimates for SCCO have trended higher, with the consensus estimate increasing by 27.03%.

VGM Score Breakdown

Southern Copper currently holds a Growth Score of B. However, the stock receives a D for both Momentum and Value, placing it in the lower 40% for those strategies. The overall VGM Score is D, which is most relevant for investors not focused on a single investment style.

Stock Outlook

With estimates moving upward, the outlook for SCCO appears positive. The stock carries a Zacks Rank #3 (Hold), suggesting expectations for performance in line with the broader market in the coming months.

Industry Comparison: Freeport-McMoRan (FCX)

Southern Copper is part of the Zacks Mining – Non Ferrous sector. Another notable company in this industry, Freeport-McMoRan (FCX), has seen its shares rise 5% over the past month. It has been over a month since FCX reported its results for the quarter ending December 2025.

Freeport-McMoRan posted quarterly revenue of $5.63 billion, a 1.5% decrease from the previous year. Earnings per share were $0.47, up from $0.31 a year earlier. For the current quarter, analysts expect FCX to deliver EPS of $0.52, a 116.7% increase year over year. The consensus estimate has moved up 11.6% in the past 30 days. FCX also holds a Zacks Rank #3 (Hold) and a VGM Score of B.

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