FINWIRES · TerminalLIVE
FINWIRES

Research Alert: Southern Copper Q1: Record Results On Surging Metal Prices

By

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

Southern Copper delivered record Q1 2026 results, with net income surging 67% Y/Y to $1.58B and EPS of $1.92 beating consensus by $0.11, due to silver prices jumping 158% and copper rising 38% to $5.83/lb. Net sales increased 36% Y/Y to $4.25B, while adjusted EBITDA climbed 55% to $2.71B, with margins expanding to 63.8%. Despite strong financial performance, copper production declined 4% Y/Y to 230,544 tons due to lower ore grades at Peruvian operations, though operating cash costs turned negative at -$0.11/lb versus $0.77 prior year due to higher prices co-products. Management expects ore grade recovery by year-end 2026 and into subsequent years. Operating cash flow surged 135% Y/Y to $1.69B, funding $442M in capex as part of the aggressive $20.5B investment program. The Tia Maria project reached 32.5% completion and remains on track for Q3 2027 startup. Leonardo Contreras Lerdo de Tejada was appointed as CEO, following the passing of former CEO Oscar Gonzalez Rocha, who led the organization for five decades.

Related Articles

Research

Research Alert: Qiagen Cuts 2026 Outlook As Q1 Sales Miss On Weak Quantiferon Testing

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:Qiagen's preliminary Q1 2026 net sales fell by 1% CER, missing the company's outlook for at least 1% growth, while reported sales grew 2% to USD492M, below consensus' USD501M. Preliminary adjusted EPS of USD0.54 was in line with the outlook, though overall results were dragged by QuantiFERON sales declining 5% CER due to reduced immigration testing demand in the U.S. and Middle East. The company downgraded 2026 guidance to 1%-2% CER sales growth (from at least 5% previously) and adjusted EPS to at least USD2.43 CER (from USD2.50 previously), expecting stronger trends in 2H, supported by acquisition benefits and sequential QuantiFERON improvement. We view the sales miss and lowered outlook as disappointing, but still see QuantiFERON as a main growth contributor, while the Parse acquisition should strengthen Qiagen's competitive position. That said, monitoring progress in other patient testing groups for QuantiFERON remains key. Full Q1 results are scheduled for May 6, 2026.

$QGEN
Research

Research Alert: Shell Agrees To Buy Arc Resources For Usd16.4b

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:Shell announced the acquisition of ARC Resources for USD16.4B enterprise value, offering CAD32.80 per share (20% premium to 30-day VWAP) through 25% cash and 75% equity consideration, expected to close in 2H 2026. The transaction will immediately add 370 kboe/d production, representing a substantial 20% increase to Shell's current 1.8M boe/d output. We believe the deal establishes Canada as a core operating region and accelerates Shell's production CAGR from 1% to 4% through 2030. Management expects USD250M in annual synergies while maintaining USD20B-USD22B capex guidance and 40%-50% cash flow distribution policy. However, Shell is paying USD44k per boe/d at the higher range of recent Canadian E&P multiples, with 75% equity consideration diluting existing shareholders by 3% and delaying free cash flow accretion until 2027. In our view, value creation will depend on Shell achieving operational improvements materially beyond stated synergies while maintaining capital efficiency metrics.

$SHEL
Research

Research Alert: Nucor Posts Strong Q1, Beats On Revenue And Eps

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:Nucor reported Q1 2026 adjusted EPS of $3.23, significantly above $0.77 prior year and beating consensus by $0.41, with revenues of $9.50B exceeding estimates by 7.1%. Steel mills posted record quarterly shipments of 7.0M tons with segment earnings more than doubling sequentially to $1.128B as external pricing improved to $1,074 per ton (+14% Y/Y) and utilization climbed to 86%. We believe operational execution remains strong across segments, with steel products earnings rising 24% sequentially and broad-based volume recovery evident. Management guided for higher Q2 earnings across all segments on price improvement and stable to growing volumes. With capex declining 18% sequentially to $661M and $2.48B in cash, Nucor returned $250M to shareholders with $3.97B remaining under buyback authorization. We expect accelerating free cash flow generation will support enhanced shareholder returns, though valuation ultimately depends on pricing power persistence amid upcoming industry capacity additions in 2027.

$NUE