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America Movil (AMX) Q2 Earnings Decline Y/Y, Revenues Increase

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America Movil, S.A.B. de C.V. (AMX - Free Report) reported a net income per ADR of 21 cents in second-quarter 2022, down from 64 cents reported in the prior-year quarter.

Net income in the June quarter was Mex$13,683 million or Mex$0.21 per share compared with Mex$42,815 million or Mex$0.65 per share in the year-ago quarter. The downside was primarily caused by higher comprehensive financing costs in the reported quarter.

The company had a comprehensive financing cost of MxP18.1 billion against the year-earlier quarter’s comprehensive financing income of MxP17.1 billion.

Amid worldwide supply chain disruptions and geopolitical turmoil, the market has been facing increased interest rates with a rise in inflation. The company noted that the U.S. dollar appreciated versus major Latin American currencies in the period.

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 strong demand for broadband services, total quarterly revenues increased 3.3% to MxP217,392 million. Higher service revenues acted as a major tailwind.

Service revenues were MxP180,685 million, up 4.5% year over year. Equipment revenues totaled MxP34,631 million, down 2.6%.

The company had 306 million wireless subscribers after adding 12.9 million subscribers from the buyout of Oi in Brazil.

On organic basis, America Movil gained 3.1 million wireless subscribers in the second quarter. This figure includes 1.8 million postpaid subscribers. Brazil and Colombia were the primary contributors for higher postpaid subscribers. The integration of Oi Brazil acted as a tailwind. The company witnessed a 1.3-million increase in net prepaid subscribers.

On the fixed-line platform, the company ended with 74.6 million revenue-generating units (RGUs).

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

Of these countries, Peru witnessed year-over-year revenue growth of 7.1% to 1,599 million soles. The robust performance was driven by higher wireless, service and equipment revenues.

Argentina’s revenues came in at ARS 54,314 million, down 7.3% from the year-ago quarter’s levels. The downside was caused by declining service and equipment and wireless revenues.

Colombia’s revenues increased 3.2% year over year to COP 3,687 billion, owing to higher service and equipment and wireless revenues.

Other Quarterly Details

Total costs and expenses were MxP134,714 million, up 2.9% from the year-ago quarter’s levels. Overall, EBITDA rose 4% (up 4.2% on constant currency) from the prior-year quarter’s levels to MxP82,677 million. The EBITDA margin came in at 38% compared with 37.8% in the year-earlier quarter.

Liquidity

As of Jun 30, 2022, America Movil had MxP150,756 million in cash, marketable securities and other short-term investments with MxP439,009 million of long-term debt.

Zacks Rank & Stocks to Consider

America Movil currently has a Zacks Rank #3 (Hold).

A few better-ranked stocks from the broader technology sector worth consideration are Synopsys (SNPS - Free Report) , Aspen Technology (AZPN - Free Report) and Broadcom (AVGO - Free Report) . All stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Broadcom’s fiscal 2022 earnings is pegged at $37.06 per share, up 4% 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 2.2%.

The Zacks Consensus Estimate for Synopsys 2022 earnings is pegged at $8.47 per share, rising 7.2% in the past 60 days. The long-term earnings growth rate is anticipated to be 19.6%.

Synopsys earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 2.7%. Shares of SNPS have increased 9.8% in the past year.

The Zacks Consensus Estimate for Aspen’s fiscal 2022 earnings is pegged at $5.50 per share, rising 1.5% in the past 60 days. The long-term earnings growth rate is anticipated to be 18.4%.

Aspen’s earnings beat the Zacks Consensus Estimate in three of the last four quarters, the average being 4.1%. Shares of AZPN have grown 25.6% in the past year.