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Here's How FEMSA (FMX) is Poised Just Ahead of Q2 Earnings
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Fomento Economico Mexicano, S.A.B. de C.V. (FMX - Free Report) or FEMSA is slated to report second-quarter 2022 earnings on Jul 28. The company is likely to register top and bottom-line growth when it reports the quarterly results.
The Zacks Consensus Estimate for FMX’s second-quarter earnings of $1.04 per share suggests 141.9% growth from the year-ago quarter’s reported figure. The consensus estimate for earnings has been unchanged in the past 30 days. The consensus mark for quarterly revenues is pegged at $7.69 billion, indicating growth of 12.4% from that reported in the year-ago quarter.
In the last reported quarter, the company delivered a negative earnings surprise of 28.7%. However, it has a trailing four-quarter earnings surprise of 3.9%, on average.
Fomento Economico Mexicano S.A.B. de C.V. Price and EPS Surprise
FEMSA has been witnessing sales momentum, owing to gains across all business units, driven by its effective growth strategies and robust demand across most markets.
On its last reported quarter’s earnings call, management noted that trends across its business units and markets have been improving.
FEMSA’s investments in digital and technology-driven initiatives are expected to have contributed to the performance in the second quarter. Its focus on offering customers more options to make contactless purchases by intensifying digital and technology-driven initiatives across operations has been aiding digital performance.
The company’s Coca-Cola FEMSA business has been leading the way with its omni-channel business, while FEMSA Comercio has been progressing with the adoption of digital initiatives. Improvements in these segments are likely to have contributed meaningfully to revenue growth in the to-be-reported quarter.
FEMSA has been on track with its strategy of creating a national distribution platform in the United States through the expansion of its footprint in the specialized distribution industry. The company’s venture in the specialized distribution industry relates to its plan of investing in adjacent businesses, which can leverage capabilities across different markets, providing an opportunity for attractive growth and risk-adjusted returns. Gains from these investments are likely to have boosted the results in the second quarter.
However, the company has been witnessing gross margin pressures, which are expected to have continued in the second quarter. FEMSA’s performance is also expected to have been partly hurt by the impacts of supply-chain disruptions and higher raw material costs.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for FEMSA this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
FEMSA has a Zacks Rank #2 and an Earnings ESP of 0.00%.
Stocks With Favorable Combination
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:
Corteva (CTVA - Free Report) has an Earnings ESP of +0.20% and currently sports a Zacks Rank #1. The company is expected to register top and bottom-line growth when it reports the second-quarter 2022 numbers. The Zacks Consensus Estimate for CTVA’s quarterly revenues is pegged at $6.18 billion, which suggests growth of 9.8% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for Corteva’s quarterly earnings has moved up by a penny in the past seven days to $1.47 per share, suggesting 5% growth from the year-ago reported number. CTVA has delivered an earnings beat of 23.3%, on average, in the trailing four quarters.
Hershey (HSY - Free Report) has an Earnings ESP of +1.54% and flaunts a Zacks Rank #1 at present. HSY is likely to register top and bottom-line growth when it reports the second-quarter 2022 numbers. The Zacks Consensus Estimate for its quarterly revenues is pegged at $2.22 billion, which suggests growth of 11.7% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Hershey’s quarterly earnings has been unchanged in the past 30 days at $1.66 per share, suggesting growth of 12.9% from the year-ago quarter’s reported number. HSY has delivered an earnings beat of 7.9%, on average, in the trailing four quarters.
Kellogg's (K - Free Report) currently has an Earnings ESP of +2.01% and a Zacks Rank #3. K is anticipated to register top-line growth when it reports the second-quarter fiscal 2022 results. The Zacks Consensus Estimate for Kellogg's quarterly revenues is pegged at $3.64 billion, indicating an improvement of 2.5% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Kellogg's bottom line has been unchanged in the past 30 days at $1.05 per share. However, the consensus estimate suggests a decline of 7.9% from the prior-year quarter. K has delivered an earnings beat of 12.8%, on average, in the trailing four quarters.
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Here's How FEMSA (FMX) is Poised Just Ahead of Q2 Earnings
Fomento Economico Mexicano, S.A.B. de C.V. (FMX - Free Report) or FEMSA is slated to report second-quarter 2022 earnings on Jul 28. The company is likely to register top and bottom-line growth when it reports the quarterly results.
The Zacks Consensus Estimate for FMX’s second-quarter earnings of $1.04 per share suggests 141.9% growth from the year-ago quarter’s reported figure. The consensus estimate for earnings has been unchanged in the past 30 days. The consensus mark for quarterly revenues is pegged at $7.69 billion, indicating growth of 12.4% from that reported in the year-ago quarter.
In the last reported quarter, the company delivered a negative earnings surprise of 28.7%. However, it has a trailing four-quarter earnings surprise of 3.9%, on average.
Fomento Economico Mexicano S.A.B. de C.V. Price and EPS Surprise
Fomento Economico Mexicano S.A.B. de C.V. price-eps-surprise | Fomento Economico Mexicano S.A.B. de C.V. Quote
Factors at Play
FEMSA has been witnessing sales momentum, owing to gains across all business units, driven by its effective growth strategies and robust demand across most markets.
On its last reported quarter’s earnings call, management noted that trends across its business units and markets have been improving.
FEMSA’s investments in digital and technology-driven initiatives are expected to have contributed to the performance in the second quarter. Its focus on offering customers more options to make contactless purchases by intensifying digital and technology-driven initiatives across operations has been aiding digital performance.
The company’s Coca-Cola FEMSA business has been leading the way with its omni-channel business, while FEMSA Comercio has been progressing with the adoption of digital initiatives. Improvements in these segments are likely to have contributed meaningfully to revenue growth in the to-be-reported quarter.
FEMSA has been on track with its strategy of creating a national distribution platform in the United States through the expansion of its footprint in the specialized distribution industry. The company’s venture in the specialized distribution industry relates to its plan of investing in adjacent businesses, which can leverage capabilities across different markets, providing an opportunity for attractive growth and risk-adjusted returns. Gains from these investments are likely to have boosted the results in the second quarter.
However, the company has been witnessing gross margin pressures, which are expected to have continued in the second quarter. FEMSA’s performance is also expected to have been partly hurt by the impacts of supply-chain disruptions and higher raw material costs.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for FEMSA this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
FEMSA has a Zacks Rank #2 and an Earnings ESP of 0.00%.
Stocks With Favorable Combination
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:
Corteva (CTVA - Free Report) has an Earnings ESP of +0.20% and currently sports a Zacks Rank #1. The company is expected to register top and bottom-line growth when it reports the second-quarter 2022 numbers. The Zacks Consensus Estimate for CTVA’s quarterly revenues is pegged at $6.18 billion, which suggests growth of 9.8% from the prior-year quarter’s reported figure.
You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Corteva’s quarterly earnings has moved up by a penny in the past seven days to $1.47 per share, suggesting 5% growth from the year-ago reported number. CTVA has delivered an earnings beat of 23.3%, on average, in the trailing four quarters.
Hershey (HSY - Free Report) has an Earnings ESP of +1.54% and flaunts a Zacks Rank #1 at present. HSY is likely to register top and bottom-line growth when it reports the second-quarter 2022 numbers. The Zacks Consensus Estimate for its quarterly revenues is pegged at $2.22 billion, which suggests growth of 11.7% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Hershey’s quarterly earnings has been unchanged in the past 30 days at $1.66 per share, suggesting growth of 12.9% from the year-ago quarter’s reported number. HSY has delivered an earnings beat of 7.9%, on average, in the trailing four quarters.
Kellogg's (K - Free Report) currently has an Earnings ESP of +2.01% and a Zacks Rank #3. K is anticipated to register top-line growth when it reports the second-quarter fiscal 2022 results. The Zacks Consensus Estimate for Kellogg's quarterly revenues is pegged at $3.64 billion, indicating an improvement of 2.5% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Kellogg's bottom line has been unchanged in the past 30 days at $1.05 per share. However, the consensus estimate suggests a decline of 7.9% from the prior-year quarter. K has delivered an earnings beat of 12.8%, on average, in the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.