HudBay Minerals (NYSE:HBM) Issues Earnings Results, Misses Expectations By $0.01 EPS

HudBay Minerals (NYSE:HBM) (TSE:HBM) announced its quarterly earnings data on Thursday. The mining company reported $0.34 EPS for the quarter, missing analysts’ consensus estimates of $0.35 by ($0.01), Zacks reports. HudBay Minerals had a net margin of 27.48% and a return on equity of 9.47%. The firm had revenue of $765.90 million during the quarter, compared to analyst estimates of $730.19 million.

Here are the key takeaways from HudBay Minerals’ conference call:

• Hudbay reported record third-quarter revenue of $766 million and adjusted EBITDA of $413 million, generating $202 million in free cash flow and ending the quarter with essentially zero net debt. The company reaffirmed 2026 production guidance and lowered its full-year cash-cost and sustaining-cost guidance.
• Operating improvements supported record throughput at Constancia and New Britannia, while Copper Mountain generated its first positive free cash flow since Hudbay acquired it. Management expects consolidated copper production to increase by more than 25% in 2027, though British Columbia costs are tracking toward the high end of guidance and production gains there are expected to be weighted to the second half.
• Hudbay and Mitsubishi made the final investment decision on Copper World, a roughly $2 billion project targeting first production in the second half of 2029. The company expects average annual production of 102,000 tons of copper over the first 10 years, with a financing plan that includes partner investment, a streaming deposit and planned project debt.
• The updated Snow Lake plan projects 37% more gold production over the next five years and extends reserve mine life to 2043. Hudbay also reported promising high-grade exploration results at Constancia that could support its production profile beyond 2030, but follow-up drilling is still underway.

HudBay Minerals Stock Down 1.4%

HBM opened at $21.62 on Friday. The company has a debt-to-equity ratio of 0.17, a quick ratio of 1.93 and a current ratio of 2.24. The company has a market cap of $9.60 billion, a price-to-earnings ratio of 12.72, a PEG ratio of 0.40 and a beta of 1.62. HudBay Minerals has a one year low of $14.34 and a one year high of $32.15. The business’s fifty day moving average is $24.87 and its two-hundred day moving average is $24.75.

HudBay Minerals Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, December 18th. Shareholders of record on Tuesday, December 1st will be given a dividend of C$0.01 per share. This represents a $0.04 dividend on an annualized basis and a yield of 0.2%. The ex-dividend date is Tuesday, December 1st. HudBay Minerals’s payout ratio is presently 1.76%.

Analyst Upgrades and Downgrades

Several research firms have recently commented on HBM. Wall Street Zen cut HudBay Minerals from a “buy” rating to a “hold” rating in a report on Sunday, October 25th. Barclays restated an “overweight” rating on shares of HudBay Minerals in a research note on Tuesday, October 6th. Weiss Ratings raised HudBay Minerals from a “buy (b-)” rating to a “buy (b)” rating in a report on Thursday, October 8th. Finally, Scotiabank reiterated an “outperform” rating on shares of HudBay Minerals in a research report on Thursday, July 30th. Ten investment analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $31.33.

About HudBay Minerals

Hudbay Minerals, now known as Hudbay Inc., is a mining company focused on the discovery, development and operation of copper and other metal deposits. Its products include copper, zinc, gold, silver and molybdenum. The company operates the Constancia mine in Peru and mining and processing assets in Manitoba, Canada, including the Lalor mine. In British Columbia, Hudbay operates the Copper Mountain mine. It also advances copper exploration and development projects in the United States, including projects in Arizona.