SCCO Gears Up to Report Q1 Earnings: What's in Store for the Stock?
Southern Copper CorporationSCCO is expected to deliver year-over-year improvements in both its top and bottom lines when it reports first-quarter 2026 results this week.
The Zacks Consensus Estimate for the quarter’s revenues is $4.26 million, indicating year-over-year growth of 36.3%. Even though the consensus mark for earnings has moved down 6% in the past 60 days to $1.77 per share, it still indicates 48.7% growth from the year-ago quarter’s actual.
Image Source: Zacks Investment Research
Southern Copper’s Earnings Surprise History
The company’s bottom line beat the Zacks Consensus Estimate in the trailing four quarters. Over the same period, the company recorded an average earnings surprise of 8.28%.
Image Source: Zacks Investment Research
What the Zacks Model Unveils for SCCO
Our proven model does not conclusively predict an earnings beat for Southern Copper this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, but that is not the case here.
Earnings ESP: The Earnings ESP for SCCO is 0.00%. You can uncover the best stocks before they are reported with our Earnings ESP Filter.
Zacks Rank: Southern Copper currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Factors Likely to Have Shaped Southern Copper’s Q1 Performance
The company had reported copper production of 956,270 tons in 2025, which reflected a modest 1.8% year-over-year decline and was slightly below SCCO’s guidance. Lower output at the Buenavista and the Peruvian mines, partially offset by a rise in production at IMMSA and La Caridad mines, led to lower output for the year. Expecting weaker ore grades at its Peruvian mines, Southern Copper projects copper production to dip 4.7% year over year to 911,400 tons in 2026.
Other metals are also expected to see declines. Molybdenum production is projected at 26,000 tons, indicating a decline from the 31,153 tons produced in 2025. Silver output is projected at 23.7 million ounces, hinting at a decrease of 2% from that reported in 2025. Zinc production for the year is projected at 165,500 tons, lower than the 2025 reported level.
We, thus, expect Southern Copper’s production to be lower year over year in the first quarter of 2026. For comparison, the company mined 240,226 tons of copper in the first quarter of 2025. Including third-party concentrate, copper production was reported at 242,004 tons. Molybdenum production for the quarter was 7,684 tons, silver was 5.4 million ounces and zinc output was 39,375 tons.
Metal prices have trended higher year over year in the first quarter, with copper supported by demand expectations and supply concerns, while silver gained from industrial and safe-haven demand. Zinc and molybdenum prices also improved from last year.
Higher realized prices are likely to have offset the impacts of lower production and sales volumes on the company’s revenues in the quarter. However, the company continues to face elevated operating costs and expenses pertaining to workers’ participation, repairing materials (mainly heavy equipment spare parts), inventory variance and exchange rate variance. The company's cost-control initiatives are likely to have cushioned the impacts on earnings.
SCCO Stock’s Price Performance
The Southern Copper stock has skyrocketed 124% in a year compared with the industry’s 271.4% upsurge.
Image Source: Zacks Investment Research
Stocks Likely to Deliver Earnings Beat
Here are some Basic Material stocks with the right combination of elements to post an earnings beat in their upcoming releases.
Teck ResourcesTECK, scheduled to release first-quarter 2026 earnings on April 23, has an Earnings ESP of +0.95% and a Zacks Rank of 2 at present.
The Zacks Consensus Estimate for earnings for Teck Resources for the first quarter of 2026 is pegged at 79 cents per share, suggesting an 88% year-over-year increase. Teck Resources has a positive trailing four-quarter average earnings surprise of 13.15%.
CF IndustriesCF, scheduled to release first-quarter 2026 earnings on May 6, has an Earnings ESP of +13.29% and a Zacks Rank of 2 at present.
The Zacks Consensus Estimate for earnings for CF Industries for the first quarter of 2026 is $2.22 per share, indicating a 20% year-over-year increase. CF Industries has a positive trailing four-quarter average earnings surprise of 13.15%.
Carpenter TechnologyCRS, scheduled to release first-quarter 2026 earnings on April 29, has an Earnings ESP of +1.94% and a Zacks Rank of 3 at present.
The Zacks Consensus Estimate for Carpenter Technology earnings for the first quarter of 2026 is pegged at $2.59 per share, indicating 38% growth from the year-ago quarter’s reported figure. Carpenter Technology has a positive trailing four-quarter average earnings surprise of 9.23%.
Radical New Technology Could Hand Investors Huge Gains
Quantum Computing is the next technological revolution, and it could be even more advanced than AI.
While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.
Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.
Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.
See Top Quantum Stocks Now >>This article originally published on Zacks Investment Research (zacks.com).
