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America Movil (AMX) Q1 Earnings & Revenues Increase Y/Y

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America Movil, S.A.B. de C.V. (AMX - Free Report) reported healthy first-quarter 2022 results, with earnings and revenues increasing on a year-over-year basis.

Quarterly net income per ADR came in at 47 cents compared with 3 cents in the prior-year quarter.

Net income in the March quarter was Mex$30,797 million or Mex$0.48 per share compared with Mex$1,810 million or Mex$0.03 per share in the year-ago quarter. The upside was primarily driven by strong operating profits and comprehensive financing income in the reported quarter.

The company had a comprehensive financing income of MxP7.3 billion against the year-earlier quarter’s comprehensive financing cost of MxP35.8 billion.

Amid worldwide supply chain disruptions and geopolitical turmoil, the market has been facing increased interest rates with a rise in inflation. The 5-year U.S. Treasury rates nearly doubled to 2.46% from 1.26% and 10-year rates increased to 2.34% from 1.51%. The company noted that the major Latin American currencies appreciated versus the U.S. dollar in the period due to interest rates comparatively increasing in those countries.

America Movil, S.A.B. de C.V. Price, Consensus and EPS Surprise

 

America Movil, S.A.B. de C.V. Price, Consensus and EPS Surprise

America Movil, S.A.B. de C.V. price-consensus-eps-surprise-chart | America Movil, S.A.B. de C.V. Quote

 

Revenues

Backed by a strong demand for broadband services, total quarterly revenues increased 2.4% to MxP211,225 million. Higher service revenues acted as a major tailwind.

Service revenues were MxP177,313 million, up 3.3% year over year. Equipment revenues totaled MxP31,842 million, down 2.9%.

America Movil gained 3.2 million wireless subscribers in the first quarter. This figure includes 1.9 million postpaid subscribers. Brazil, Colombia and Austria were the primary contributors for higher postpaid subscribers.

The company witnessed a 1.3-million increase in net prepaid subscribers driven by Mexico, Colombia, Brazil and Central America.

On the fixed-line platform, the company ended with 74.5 million revenue-generating units (RGUs). AMX gained 232,000 new broadband clients in the fixed-line segment. The company had 289.7 million wireless subscribers as of Mar 31, 2022.

On Apr 20, 2022, America Movil announced that shareholders approved the increase of its buyback fund by an additional amount of MxP$26 billion pesos for the April 2021 to April 2022 period. The company also announced a dividend payment of  MXP$0.44 per share, which will be paid to shareholders on Aug 29, 2022.

The telco operates in multiple regions, namely Mexico, Brazil, Colombia, Peru, Ecuador, Chile Argentina, Central America, Caribbean, Austria and Other European.

Out of these, Peru witnessed year-over-year revenue growth of 10.6% to 1,597 million soles. The robust performance was driven by higher service and equipment revenues.

Argentina’s revenues came in at ARS 48,395 million, down 2.8% from the year-ago quarter’s levels. The downside was caused by declining service and equipment and wireless revenues.

Colombia revenues increased 5.3% year over year to COP 3,737 billion owing to higher service and equipment and wireless revenues.

Other Quarterly Details

Total expenses were MxP130,081 million, up 1.3% from the year-ago quarter. Overall, EBITDA rose 4.2% (up 4.3% on constant currency) from the prior-year quarter’s levels to MxP81,144 million. The EBITDA margin came in at 38.4% compared with 37.8% in the year-earlier quarter on the back of increases in EBITDA across the Dominican Republic, Eastern Europe and Central America.

Liquidity

As of Mar 31, 2022, America Movil had MxP176,429 million in cash, marketable securities and other short-term investments with MxP445,321 million of long-term debt.

Zacks Rank & Stocks to Consider

America Movil currently has a Zacks Rank #1 (Strong Buy).

Some better-ranked stocks from the broader technology sector are Flex (FLEX - Free Report) , Jabil (JBL - Free Report) and Broadcom (AVGO - Free Report) . Flex and Jabil sport a Zacks Rank #1 (Strong Buy), while Broadcom carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

The Zacks Consensus Estimate for Flex’s fiscal 2022 earnings is pegged at $1.88 per share, unchanged in the past 60 days. The long-term earnings growth rate is pegged at 14.9%.

Flex earnings beat the Zacks Consensus Estimate all last four quarters, with the average being 25.6%. Shares of FLEX have declined 11.2% in the past year.

The Zacks Consensus Estimate for Jabil fiscal 2022 earnings is pegged at $7.25 per share, up 10.2% in the past 60 days. The long-term earnings growth rate is 12%.

Jabil earnings beat the Zacks Consensus Estimate all last four quarters, with the average being 13.5%. Shares of JBL have gained 4.3% in the past year.

The Zacks Consensus Estimate for Broadcom’s fiscal 2022 earnings is pegged at $35.67 per share, up 7.6% in the past 60 days. AVGO’s long-term earnings growth rate is pegged at 14.5%.

Broadcom’s earnings beat the Zacks Consensus Estimate in all the preceding four quarters, with the average being 1.9%. Shares of AVGO have increased 22% in the past year.


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