U.S. stocks edge higher; solid earnings season continues
Nexa Resources (NYSE:NEXA) stock has touched a 52-week low, with shares falling to $5.09, marking a steep 41.25% decline year-to-date and reflecting a challenging period for the mining sector. According to InvestingPro analysis, the company’s current market capitalization stands at $684.71 million. The company, which has experienced significant volatility over the past year, has seen its stock price decline by 27.14% from the previous year. Despite generating substantial EBITDA of $608.51 million, Nexa faces operational challenges, with InvestingPro data indicating the company wasn’t profitable over the last twelve months. However, analysts expect net income growth this year, suggesting potential recovery opportunities. Investors are closely monitoring Nexa’s performance as it navigates through operational and market headwinds, with the current price level marking the lowest point in the stock’s trajectory over the last year. The 52-week low serves as a critical indicator for shareholders and potential investors, as they assess the company’s future amidst fluctuating commodity prices and global economic pressures. InvestingPro analysis suggests the stock is currently undervalued, with additional insights available in the comprehensive Pro Research Report, one of 1,400+ detailed company analyses available to subscribers.
In other recent news, Nexa Resources reported its Q4 2024 earnings, revealing a mixed financial performance. The company missed its EPS estimates, posting $0.3041 compared to the forecast of $0.3288. However, Nexa Resources exceeded revenue expectations, generating $716.68 million against the anticipated $698.65 million. The company’s total consolidated revenues for the quarter increased by 18% year-over-year to $741 million, with a full-year revenue of $766 million, an 8% rise from the previous year. The Aripuana mine played a significant role in this growth, with substantial increases in the production of zinc, copper, lead, and silver.
Despite the revenue success, the earnings miss led to a 5.34% drop in Nexa Resources’ stock in after-hours trading. Analysts have noted that the company’s future outlook is positive, with expectations of revenue growth in 2025 driven by pricing and volume expansion. Additionally, Nexa Resources anticipates higher EBITDA and positive cash flow from the Aripuana mine. The company’s Cerro Pasco integration project is progressing, with a total capital expenditure of $140 million planned. Sustaining capital expenditures for 2025 are projected at around $316 million.
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