Southern Copper Corporation Just Recorded A 10% EPS Beat: Here's What Analysts Are Forecasting Next

As you might know, Southern Copper Corporation (NYSE:SCCO) just kicked off its latest quarterly results with some very strong numbers. It was overall a positive result, with revenues beating expectations by 5.2% to hit US$3.4b. Southern Copper reported statutory earnings per share (EPS) US$1.35, which was a notable 10% above what the analysts had forecast. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Following the latest results, Southern Copper's 15 analysts are now forecasting revenues of US$12.8b in 2026. This would be a reasonable 3.8% improvement in revenue compared to the last 12 months. Per-share earnings are expected to increase 9.9% to US$5.17. In the lead-up to this report, the analysts had been modelling revenues of US$12.6b and earnings per share (EPS) of US$5.05 in 2026. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

View our latest analysis for Southern Copper

There's been no major changes to the consensus price target of US$115, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Southern Copper, with the most bullish analyst valuing it at US$155 and the most bearish at US$66.63 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that Southern Copper's revenue growth is expected to slow, with the forecast 3.0% annualised growth rate until the end of 2026 being well below the historical 5.7% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 7.5% per year. Factoring in the forecast slowdown in growth, it seems obvious that Southern Copper is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Southern Copper following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Southern Copper's revenue is expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on Southern Copper. Long-term earnings power is much more important than next year's profits. We have forecasts for Southern Copper going out to 2027, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 1 warning sign for Southern Copper that you need to be mindful of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.