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Things You Need to Know Before FEMSA's (FMX) Q3 Earnings
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Fomento Economico Mexicano, S.A.B. de C.V. (FMX - Free Report) or FEMSA is slated to report third-quarter 2022 earnings on Oct 28. The company is likely to have witnessed top and bottom-line declines in the quarter under review.
The Zacks Consensus Estimate for FMX’s third-quarter earnings of 60 cents per share suggests a 68.8% decline 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 $7.1 billion, indicating a decrease of 0.04% from that reported in the year-ago quarter.
In the last reported quarter, the company delivered an earnings surprise of 5.8%. However, it has a trailing four-quarter earnings surprise of 18.9%, on average.
Fomento Economico Mexicano S.A.B. de C.V. Price and EPS Surprise
FEMSA has been gaining from effective growth strategies and robust demand across most markets. Also, sales momentum, owing to gains across all business units, bodes well.
The company’s investments in digital and technology-driven initiatives are expected to have contributed to the performance in the third quarter. Its focus on offering customers more options to make contactless purchases by intensifying digital and technology-driven initiatives across operations has been aiding the digital performance.
The company’s Coca-Cola FEMSA has been leading the way with its omni-channel business, while FEMSA Comercio has been progressing with the adoption of digital initiatives. Investments in digital offerings, loyalty programs and fintech platforms bode well. Its OXXO digital wallet, OXXO Premia and loyalty program have also been performing well. Such endeavors are likely to have aided revenues 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 company’s performance in the third quarter.
However, the company has been witnessing gross margin pressures, which are expected to have continued in the third quarter. FEMSA’s performance is also expected to have been partly hurt by the impacts of supply-chain disruptions and higher raw material costs. Inflation in steel and aluminum prices remain concerning.
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 #4 (Sell) and an Earnings ESP of 0.00%.
Stocks Poised to Beat Earnings Estimates
Here are some companies that you may want to consider, as our model shows that these have the right combination of elements to deliver an earnings beat.
e.l.f. Beauty (ELF - Free Report) has an Earnings ESP of +7.58% and it currently sports a Zacks Rank of 1. The company is likely to register top-line growth when it reports third-quarter 2022 results. The consensus mark for ELF’s quarterly revenues is pegged at $105.7 million, which suggests 15.1% growth from the figure reported in the prior-year quarter.
The consensus mark for e.l.f. Beauty’s quarterly earnings has moved up by a penny in the past 30 days to 15 cents per share. The consensus estimate for ELF’s third-quarter earnings suggests a decline of 28.6% from the year-ago quarter’s reported figure.
Anheuser-Busch InBev (BUD - Free Report) , alias AB InBev, currently has an Earnings ESP of +1.22% and a Zacks Rank of 3. The company is likely to register increases in the top and bottom lines when it reports third-quarter 2022 results. The Zacks Consensus Estimate for quarterly earnings moved south by a penny in the last seven days to 82 cents per share. However, the consensus estimate indicates growth of 64% from the year-ago quarter's reported number.
AB InBev’s top line is expected to have risen year over year. The Zacks Consensus Estimate for BUD’s quarterly revenues is pegged at $15.2 billion, suggesting growth of 6.8% from the figure reported in the prior-year quarter. BUD has delivered an earnings beat of 2.4%, on average, in the trailing four quarters.
Kellogg's (K - Free Report) has an Earnings ESP of +2.49% and a Zacks Rank #3 at present. K is likely to register top-line growth when it reports the third-quarter 2022 numbers. The Zacks Consensus Estimate for its quarterly revenues is pegged at $3.76 billion, which suggests growth of 3.8% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Kellogg's quarterly earnings has been unchanged in the past 30 days at 96 cents per share. However, the consensus mark suggests a decline of 11.9% from the year-ago quarter’s reported number. K has delivered an earnings surprise of 13.3%, on average, in the trailing four quarters.
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Things You Need to Know Before FEMSA's (FMX) Q3 Earnings
Fomento Economico Mexicano, S.A.B. de C.V. (FMX - Free Report) or FEMSA is slated to report third-quarter 2022 earnings on Oct 28. The company is likely to have witnessed top and bottom-line declines in the quarter under review.
The Zacks Consensus Estimate for FMX’s third-quarter earnings of 60 cents per share suggests a 68.8% decline 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 $7.1 billion, indicating a decrease of 0.04% from that reported in the year-ago quarter.
In the last reported quarter, the company delivered an earnings surprise of 5.8%. However, it has a trailing four-quarter earnings surprise of 18.9%, 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 gaining from effective growth strategies and robust demand across most markets. Also, sales momentum, owing to gains across all business units, bodes well.
The company’s investments in digital and technology-driven initiatives are expected to have contributed to the performance in the third quarter. Its focus on offering customers more options to make contactless purchases by intensifying digital and technology-driven initiatives across operations has been aiding the digital performance.
The company’s Coca-Cola FEMSA has been leading the way with its omni-channel business, while FEMSA Comercio has been progressing with the adoption of digital initiatives. Investments in digital offerings, loyalty programs and fintech platforms bode well. Its OXXO digital wallet, OXXO Premia and loyalty program have also been performing well. Such endeavors are likely to have aided revenues 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 company’s performance in the third quarter.
However, the company has been witnessing gross margin pressures, which are expected to have continued in the third quarter. FEMSA’s performance is also expected to have been partly hurt by the impacts of supply-chain disruptions and higher raw material costs. Inflation in steel and aluminum prices remain concerning.
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 #4 (Sell) and an Earnings ESP of 0.00%.
Stocks Poised to Beat Earnings Estimates
Here are some companies that you may want to consider, as our model shows that these have the right combination of elements to deliver an earnings beat.
e.l.f. Beauty (ELF - Free Report) has an Earnings ESP of +7.58% and it currently sports a Zacks Rank of 1. The company is likely to register top-line growth when it reports third-quarter 2022 results. The consensus mark for ELF’s quarterly revenues is pegged at $105.7 million, which suggests 15.1% growth from the figure reported in the prior-year quarter.
You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus mark for e.l.f. Beauty’s quarterly earnings has moved up by a penny in the past 30 days to 15 cents per share. The consensus estimate for ELF’s third-quarter earnings suggests a decline of 28.6% from the year-ago quarter’s reported figure.
Anheuser-Busch InBev (BUD - Free Report) , alias AB InBev, currently has an Earnings ESP of +1.22% and a Zacks Rank of 3. The company is likely to register increases in the top and bottom lines when it reports third-quarter 2022 results. The Zacks Consensus Estimate for quarterly earnings moved south by a penny in the last seven days to 82 cents per share. However, the consensus estimate indicates growth of 64% from the year-ago quarter's reported number.
AB InBev’s top line is expected to have risen year over year. The Zacks Consensus Estimate for BUD’s quarterly revenues is pegged at $15.2 billion, suggesting growth of 6.8% from the figure reported in the prior-year quarter. BUD has delivered an earnings beat of 2.4%, on average, in the trailing four quarters.
Kellogg's (K - Free Report) has an Earnings ESP of +2.49% and a Zacks Rank #3 at present. K is likely to register top-line growth when it reports the third-quarter 2022 numbers. The Zacks Consensus Estimate for its quarterly revenues is pegged at $3.76 billion, which suggests growth of 3.8% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Kellogg's quarterly earnings has been unchanged in the past 30 days at 96 cents per share. However, the consensus mark suggests a decline of 11.9% from the year-ago quarter’s reported number. K has delivered an earnings surprise of 13.3%, on average, in the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.