Can NEXA maintain its earnings momentum in Q4 2024?

**NEXA's Q4 2024 earnings outlook appears challenging based on current indicators.** Here's a detailed analysis: 1. **Recent Performance**: Nexa Resources S.A. (NEXA) has experienced a decline in net income, with a MRQ of -$111.4 million, compared to the previous quarter's net income of $6 million. This significant drop suggests that NEXA is facing considerable pressure in Q4 2024. |code|Ticker|Name|Date|Net Income YoY|Total Revenue YoY|Diluted EPS YoY|market_code| |---|---|---|---|---|---|---|---| |NEXA|NEXA.N|Nexa Resources|2024 Q1|25.4510058403634|-13.11758412031445|-20|169| |NEXA|NEXA.N|Nexa Resources|2024 Q2|32.60429638854296|17.48847940973729|24.675324675324685|169| |NEXA|NEXA.N|Nexa Resources|2024 Q3|109.27827057874822|9.262105480384516|92.98245614035086|169| |NEXA|NEXA.N|Nexa Resources|2024 Q4|-2.4237074632903943|17.62899740743034||169| 2. **Revenue Growth**: Despite the negative net income, NEXA has seen a 17.63% year-over-year increase in total revenue, reaching $740.92 million in the MRQ. This growth in revenue could provide some stability for the company, but it may not be enough to offset the negative earnings momentum. |code|Ticker|Name|Date|Total Revenue|Net Income|Diluted EPS|market_code| |---|---|---|---|---|---|---|---| |NEXA|NEXA.N|Nexa Resources|2024 Q1|5.79782E8|-1.1488E7|-0.18|169| |NEXA|NEXA.N|Nexa Resources|2024 Q2|7.36305E8|-6.9272E7|-0.58|169| |NEXA|NEXA.N|Nexa Resources|2024 Q3|7.09476E8|5983000|-0.04|169| |NEXA|NEXA.N|Nexa Resources|2024 Q4|7.40918E8|-1.11395E8||169| 3. **Analyst Expectations**: The consensus rating for NEXA is a "Strong Sell" with an average analyst price target of $5.33, indicating a bearish outlook. This sentiment is reinforced by the company's track record of missing earnings estimates in the past. 4. **Strategic Moves**: NEXA has recently sold its interests in the Chapi copper mine, which could be a strategic move to focus on more profitable assets. However, the impact of such moves on Q4 2024 earnings is yet to be seen. 5. **Market Conditions**: The broader market conditions for the mining sector, including fluctuations in metal prices, will likely continue to influence NEXA's performance. While higher zinc and copper prices have benefited the company in the past, the impact of these price changes on Q4 2024 earnings is unclear. In conclusion, while NEXA's revenue growth and strategic moves may provide some support, the negative earnings trend, analyst sentiment, and market conditions suggest that maintaining earnings momentum in Q4 2024 could be difficult. The company's focus on cost management and operational efficiency will be crucial in determining its financial performance for the period.