Ero Copper Misses EPS and Revenue Estimates in Earnings Report

Ero Copper Corp. (ERO) reported quarterly earnings of $0.17 per share, missing expectations of $0.21. Investors should be cautious as revenues also fell short by 5.77%, possibly affecting stock performance amidst unfavorable estimate revisions.

Date: 07-03-2025

AI Rating: 4

Earnings Per Share (EPS) - Ero Copper Corp. reported quarterly earnings of $0.17 per share, which was a miss compared to the Zacks Consensus Estimate of $0.21. This indicates a significant earnings surprise of -19.05% compared to the previous year when the company earned $0.21 per share.

Revenue Growth - The reported revenues were $122.5 million, falling short of the Zacks Consensus Estimate by 5.77%. Compared to the year-ago revenues of $116.41 million, there was a marginal increase, but missing estimates could create negative sentiment among investors.

The company has managed to surpass consensus EPS estimates three times over the last four quarters, but the recent miss is concerning. Over the past quarter, it was expected to report earnings of $0.22 per share, yet it exceeded this with actual earnings of $0.27, indicating prior strength that may have disappeared now.

The guidance for future quarters appears to be bleak as current trends in earnings estimate revisions are unfavorable. Notably, the Zacks Rank has dropped to #5 (Strong Sell), suggesting expected underperformance. The consensus EPS estimate for the next quarter stands at $0.14 and $2.09 for the current fiscal year, alongside revenue expectations of $158 million and $803.78 million, respectively. Given this outlook and the mentioned estimate trends, investor confidence in Ero Copper may wane.

The performance of Ero Copper is further compounded by its underperformance relative to the S&P 500, reflected in an 8.3% decline so far this year compared to the S&P's -0.7%.

Given the weak outlook and earnings miss, stock prices are likely to be adversely affected in the near future.

Stocks: ERO