Back to top

Analyst Blog

Fomento Economico Mexicano, S.A.B. de C.V. (FMX - Analyst Report), also known as FEMSA, is set to report first-quarter 2014 results on Apr 30. Last quarter, it posted a negative surprise of 47.8%. Let us see how things are shaping up for this announcement.

Factors Affecting the Past Quarter

FEMSA posted lower-than-expected bottom-line results for the fourth quarter of 2013. The company’s net majority income fell 49.5% year over year due to rise in cost of sales and operating expenses, fall in Heineken’s fourth-quarter 2013 net income in which FEMSA has a 20% participation interest and increased financing expenses resulting from the recently issued bonds by Coca-Cola FEMSA and FEMSA Comercio.

Earnings Whispers?

Our proven model does not conclusively project FEMSA as likely to beat earnings this quarter. A stock needs to have both positive Earnings ESP and a Zacks Rank #1, 2 or 3 to surpass earnings estimates. However, that is not the case here due to the following factors:

Zacks ESP: ESP for FEMSA is 0.00% since the Most Accurate Estimate stands at 51 cents per share, which is in line with the Zacks Consensus Estimate.

Zacks #3 Rank (Hold): FEMSA’s Zacks Rank #3 increases the predictive power of ESP. However, we need to have a positive ESP to be confident of an earnings surprise call. We caution against stocks with a Zacks Rank #4 and 5 (Sell-rated stocks) going into earnings announcement, especially when the company is undergoing negative estimate revisions.

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
RPC INC RES 24.91 +8.35%
LITHIA MOTO… LAD 94.59 +4.60%
DELTA AIR L… DAL 39.15 +3.90%
FLAMEL TECH… FLML 14.51 +3.50%
SOUTHWEST A… LUV 28.87 +2.92%