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America Movil (AMX) Q4 Earnings & Revenues Decrease Y/Y

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America Movil, S.A.B. de C.V. (AMX - Free Report) reported net income per ADR of 22 cents for fourth-quarter 2022, down from $1.96 reported in the prior-year quarter.

Net income in the December quarter was Mex$13,710 million or Mex$0.22 per share compared with Mex$131,986 million or Mex$2.03 per share in the year-ago quarter. The bottom line was affected mainly due to the deconsolidation of Claro Chile.

The company had a comprehensive financing cost of Mex$8,301 million, down 57.5% from the year-earlier quarter’s comprehensive financing costs of Mex$19,550 million.

Revenues

Total quarterly revenues decreased 2.4% to Mex$215,962 million owing to unfavorable foreign currency movement and weakness in service and equipment revenues.

Service revenues were Mex$172,695 million, down 1.4% year over year. Equipment revenues totaled Mex$35,381 million, down 4.8%.

America Movil gained 3.3 million wireless subscribers in the fourth quarter. This figure includes 1.5 million postpaid subscribers. Brazil, Austria and Colombia were the primary contributors to postpaid subscriber growth. The company witnessed an increase of 1.8 million in prepaid subscribers. The company had 300 million wireless subscribers at the end of the fourth quarter.

On the fixed-line, Broadband and Television platforms, the company ended the quarter with 73.2 million revenue-generating units.

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

Of these countries, Peru witnessed year-over-year revenue growth of 5.8% to 1,766 million Soles. The robust performance was driven by higher fixed-line and service revenues.

Argentina’s revenues came in at ARS 75,004 million, down 14.3% from the year-ago quarter’s levels. The downside was caused by declining service, fixed line, equipment and wireless revenues.

Colombia’s revenues decreased 3% year over year to COP 3,742 billion, owing to lower equipment, fixed line and wireless revenues.

Revenues from Mexico, Brazil, Ecuador, Central America, the Caribbean, Austria and Other European regions witnessed year-over-year growth of 1.3%, 9.7%, 9.7%, 3.8%, 20.8%, 4.2% and 12%, respectively. However, Columbia saw a 3% year-over-year decline in revenues in the reported quarter.

Other Quarterly Details

Total costs and expenses were Mex$131,207 million, down 1.1% from the year-ago quarter’s levels. Overall, EBITDA declined 4.4% from the prior-year quarter’s levels to Mex$84,755 million. The EBITDA margin came in at 39.2% compared with 40.1% in the year-earlier quarter. The company’s operating profit decreased 7.2% to Mex$44,685 million.

Liquidity

As of Dec 31, 2022, America Movil had Mex$122,129 million in cash, marketable securities and other short-term investments with Mex$408,565 million of long-term debt.

Zacks Rank & Other Stocks to Consider

America Movil currently has a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the broader technology space are Arista Networks (ANET - Free Report) , Jabil (JBL - Free Report) and Bandwidth (BAND - Free Report) , each currently carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for Arista Networks 2023 earnings is pegged at $5.23 per share, rising 0.8% in the past 60 days. The long-term earnings growth rate is anticipated to be 17.5%.

Arista Networks’ earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 14.7%. Shares of ANET have increased 10.7% in the past year.

The Zacks Consensus Estimate for Jabil’s 2023 earnings is pegged at $8.37 per share, rising 0.7% in the past 60 days. The long-term earnings growth rate is anticipated to be 12%.

Jabil’s earnings beat the Zacks Consensus Estimate in all the last four quarters, the average being 8.8%. Shares of JBL have increased 39.1% in the past year.

The Zacks Consensus Estimate for Bandwidth 2022 earnings is pegged at 37 cents per share, unchanged in the past 60 days. The long-term earnings growth rate is anticipated to be 25%.

BAND's earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 301.8%. Shares of the company have declined 59.2% in the past year.

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