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America Movil (AMX) to Sell its Cell Towers in Select Locations
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America Movil (AMX - Free Report) has announced that it is likely to sell the cellular towers located in the Dominican Republic and Peru to Sitios Latinoamerica. The company completed the spin-off of Sitios Latinoamerica in August 2022. The sell-off is expected to start by the beginning of 2023.
The company will pay Sitios Latinoamerica about $350 million to fulfil its rent costs. The spin-off of its cell tower business - Sitios Latinoamerica - was mainly aimed at debt reduction.
America Movil continues to develop alternative solutions to maximize the value of its tower assets while increasing shareholder value and lowering debt. The business took advantage of the investments it had made in new technologies over the previous years to expand the reach and capacity of its platforms, allowing it to handle huge traffic surges without sacrificing quality or speed.
In July 2022, America Movil concluded the sale of its subsidiary Claro Panama, S.A. to Cable & Wireless Panama, S.A. However, the sale does not include telecommunication towers that are owned indirectly by AMX in Panama and the Claro trademarks.
America Movil offers enhanced communications solutions in 25 countries in Latin America, the United States and Central and Eastern Europe. It also offers a vast range of wireless services, including prepaid voice services and wireless data services such as SMS, MMS, group messaging, SMS notification and Internet access services.
The company reported net income per ADR of 28 cents for third-quarter 2022, up from 24 cents reported in the prior-year quarter.
Backed by strong demand for broadband services, total quarterly revenues increased 3.3% to Mex$214,466 million. Higher service revenues acted as a major tailwind.
Service revenues were Mex$179,716 million, up 3% year over year. Equipment revenues totaled Mex$32,495 million, down 5.4%.
America Movil gained 2.9 million wireless subscribers in the third quarter. This figure includes 1.9 million post-paid subscribers. Brazil, Austria, Colombia and Peru were the primary contributors to post-paid subscriber growth. The company witnessed an increase of 1 million in prepaid subscribers. The company had 307.8 million wireless subscribers at the end of the third quarter.
The company aims to grow in other parts of the world by continuing to expand its subscriber base through the development of existing businesses and strategic acquisitions.
However, the company’s performance is affected due to unfavorable exchange rate movements and rising interest rates.
America Movil currently has a Zacks Rank #4 (Sell). Shares of the company have lost 3.7% compared with the industry’s decline of 20.7% in the past year.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks from the broader technology space are InterDigital (IDCC - Free Report) , Pure Storage (PSTG - Free Report) and Aspen Technology (AZPN - Free Report) . Pure Storage and InterDigital currently sport a Zacks Rank #1 (Strong Buy), whereas Aspen Technology presently carries a Zacks Rank #2 (Buy). You can seethe complete list of today’s Zacks #1 Rank stocks.
The Zacks Consensus Estimate for InterDigital’s 2022 earnings is pegged at $2.45 per share, up 2.5% in the past 60 days. The long-term earnings growth rate is anticipated to be 25%.
InterDigital’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 81.9%. Shares of IDCC have decreased 30.5% in the past year.
The Zacks Consensus Estimate for PSTG 2022 earnings is pegged at $1.18 per share, rising 24.2% in the past 60 days. The long-term earnings growth rate is anticipated to be 35.5%.
Pure Storage’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 171.8%. Shares of PSTG have increased 5.2% in the past year.
The Zacks Consensus Estimate for Aspen Technology’s fiscal 2023 earnings is pegged at $6.77 per share, increasing 0.5% in the past 60 days. The long-term earnings growth rate is anticipated to be 18.2%.
Aspen Technology’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 6.2%. Shares of AZPN have increased 54% in the past year.
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America Movil (AMX) to Sell its Cell Towers in Select Locations
America Movil (AMX - Free Report) has announced that it is likely to sell the cellular towers located in the Dominican Republic and Peru to Sitios Latinoamerica. The company completed the spin-off of Sitios Latinoamerica in August 2022. The sell-off is expected to start by the beginning of 2023.
The company will pay Sitios Latinoamerica about $350 million to fulfil its rent costs. The spin-off of its cell tower business - Sitios Latinoamerica - was mainly aimed at debt reduction.
America Movil continues to develop alternative solutions to maximize the value of its tower assets while increasing shareholder value and lowering debt. The business took advantage of the investments it had made in new technologies over the previous years to expand the reach and capacity of its platforms, allowing it to handle huge traffic surges without sacrificing quality or speed.
America Movil, S.A.B. de C.V. Price and Consensus
America Movil, S.A.B. de C.V. price-consensus-chart | America Movil, S.A.B. de C.V. Quote
In July 2022, America Movil concluded the sale of its subsidiary Claro Panama, S.A. to Cable & Wireless Panama, S.A. However, the sale does not include telecommunication towers that are owned indirectly by AMX in Panama and the Claro trademarks.
America Movil offers enhanced communications solutions in 25 countries in Latin America, the United States and Central and Eastern Europe. It also offers a vast range of wireless services, including prepaid voice services and wireless data services such as SMS, MMS, group messaging, SMS notification and Internet access services.
The company reported net income per ADR of 28 cents for third-quarter 2022, up from 24 cents reported in the prior-year quarter.
Backed by strong demand for broadband services, total quarterly revenues increased 3.3% to Mex$214,466 million. Higher service revenues acted as a major tailwind.
Service revenues were Mex$179,716 million, up 3% year over year. Equipment revenues totaled Mex$32,495 million, down 5.4%.
America Movil gained 2.9 million wireless subscribers in the third quarter. This figure includes 1.9 million post-paid subscribers. Brazil, Austria, Colombia and Peru were the primary contributors to post-paid subscriber growth. The company witnessed an increase of 1 million in prepaid subscribers. The company had 307.8 million wireless subscribers at the end of the third quarter.
The company aims to grow in other parts of the world by continuing to expand its subscriber base through the development of existing businesses and strategic acquisitions.
However, the company’s performance is affected due to unfavorable exchange rate movements and rising interest rates.
America Movil currently has a Zacks Rank #4 (Sell). Shares of the company have lost 3.7% compared with the industry’s decline of 20.7% in the past year.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks from the broader technology space are InterDigital (IDCC - Free Report) , Pure Storage (PSTG - Free Report) and Aspen Technology (AZPN - Free Report) . Pure Storage and InterDigital currently sport a Zacks Rank #1 (Strong Buy), whereas Aspen Technology presently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks.
The Zacks Consensus Estimate for InterDigital’s 2022 earnings is pegged at $2.45 per share, up 2.5% in the past 60 days. The long-term earnings growth rate is anticipated to be 25%.
InterDigital’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 81.9%. Shares of IDCC have decreased 30.5% in the past year.
The Zacks Consensus Estimate for PSTG 2022 earnings is pegged at $1.18 per share, rising 24.2% in the past 60 days. The long-term earnings growth rate is anticipated to be 35.5%.
Pure Storage’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 171.8%. Shares of PSTG have increased 5.2% in the past year.
The Zacks Consensus Estimate for Aspen Technology’s fiscal 2023 earnings is pegged at $6.77 per share, increasing 0.5% in the past 60 days. The long-term earnings growth rate is anticipated to be 18.2%.
Aspen Technology’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 6.2%. Shares of AZPN have increased 54% in the past year.