Nexa Resources (NYSE:NEXA) Issues Earnings Results

Nexa Resources (NYSE:NEXA) issued its earnings results on Thursday. The company reported $0.64 EPS for the quarter, missing the consensus estimate of $0.71 by ($0.07), FiscalAI reports. Nexa Resources had a net margin of 6.44% and a return on equity of 16.32%. The firm had revenue of $907.93 million during the quarter, compared to analyst estimates of $906.52 million.

Here are the key takeaways from Nexa Resources’ conference call:

• Second-quarter financial performance strengthened: Adjusted EBITDA rose 78% year over year to $286 million, with a 31.5% margin, while net leverage declined to 1.4x from 2.28x a year earlier. Management is targeting leverage near 1.0x by year-end.
• Mining operations recovered: Zinc production increased 8% year over year, supported by improved grades and the normalization of Peruvian mines. The fourth tailings filter at Aripuanã is operational, and management expects the mine to approach full capacity over the next several months.
• Cajamarquilla is recovering from a May fire: The incident temporarily reduced zinc metal and oxide sales by 7% year over year, although upstream cathode production continued and operations returned to normal levels in June. The company expects to recover the lost volume in the second half and maintained its 2026 sales guidance.
• Smelting costs remain above guidance: Cash costs were $1.44 per pound in the quarter and $1.42 per pound for the first half, pressured by higher raw-material prices, temporary Cajamarquilla costs, labor and maintenance inflation, and the stronger Brazilian real. Management expects costs to move back toward guidance as volumes recover.
• Cerro de Pasco plans were de-risked but reprioritized: A longer Atacocha open-pit life allows phase two to be deferred to 2032, spreading capital without reducing expected production. However, estimated project investment increased from $138 million to $180 million, with the additional spending largely falling in 2027 and beyond.

Nexa Resources Stock Performance

Shares of NYSE NEXA traded up $0.25 during trading on Thursday, reaching $14.30. 746,932 shares of the company traded hands, compared to its average volume of 948,913. The company has a quick ratio of 0.54, a current ratio of 0.85 and a debt-to-equity ratio of 1.13. The firm has a 50 day simple moving average of $13.42 and a 200-day simple moving average of $12.93. Nexa Resources has a 52-week low of $4.70 and a 52-week high of $16.89. The stock has a market capitalization of $1.89 billion, a PE ratio of 9.05, a P/E/G ratio of 0.15 and a beta of 0.94.

Hedge Funds Weigh In On Nexa Resources

Several hedge funds and other institutional investors have recently modified their holdings of the company. Marshall Wace LLP purchased a new stake in shares of Nexa Resources during the 4th quarter valued at about $8,653,000. Walleye Capital LLC purchased a new stake in Nexa Resources during the fourth quarter valued at approximately $4,628,000. Renaissance Technologies LLC raised its position in Nexa Resources by 120.8% in the fourth quarter. Renaissance Technologies LLC now owns 852,800 shares of the company’s stock worth $7,547,000 after acquiring an additional 466,500 shares during the period. Jane Street Group LLC purchased a new position in shares of Nexa Resources during the 4th quarter worth $2,404,000. Finally, Goldman Sachs Group Inc. bought a new stake in shares of Nexa Resources during the 4th quarter valued at $1,984,000.

Analyst Ratings Changes

NEXA has been the topic of a number of recent analyst reports. Citigroup lifted their price target on Nexa Resources from $12.50 to $16.00 and gave the stock a “neutral” rating in a report on Wednesday, June 3rd. Morgan Stanley upped their price target on Nexa Resources from $11.50 to $12.50 and gave the company an “equal weight” rating in a research report on Wednesday, July 8th. Bank of America upped their target price on Nexa Resources from $12.00 to $14.00 and gave the stock an “underperform” rating in a research note on Thursday, July 9th. Wall Street Zen downgraded shares of Nexa Resources from a “strong-buy” rating to a “buy” rating in a report on Tuesday, July 28th. Finally, Zacks Research downgraded shares of Nexa Resources from a “strong-buy” rating to a “hold” rating in a research note on Wednesday, July 8th. Six research analysts have rated the stock with a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of “Reduce” and an average target price of $14.60.

Nexa Resources Company Profile

Nexa Resources SA is a Brazil-based metals and mining company with a primary focus on zinc and copper. Listed on the New York Stock Exchange under the ticker NEXA, the firm develops, extracts and processes mineral resources for industrial applications worldwide. Headquartered in São Paulo, Brazil, Nexa is a leading participant in Latin America’s mining sector with a diversified portfolio of upstream and downstream operations.

The company’s operations span multiple mining and smelting complexes in Brazil’s Minas Gerais and Mato Grosso regions, as well as in Peru’s coastal and Andean zones.