It has been about a month since the last earnings report for Amer Movil (
AMX Quick Quote AMX - Free Report) . Shares have added about 1.9% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Amer Movil due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
America Movil's Q1 Earnings and Revenues Rise Y/Y
America Movil reported net income per ADR of 51 cents for first-quarter 2023, up from 47 cents reported in the prior-year quarter.
Net income in the March quarter was Mex$30,146 million or Mex$0.48 per share compared with Mex$30,797 million or Mex$0.48 per share in the year-ago quarter. The company had a comprehensive financing cost of Mex$374 million, down 94.9% from the year-earlier quarter’s comprehensive financing costs of Mex$7,364 million Revenues
Total quarterly revenues increased 1.7% to Mex$208,926 million owing to solid momentum in the equipment business segment.
Service revenues were Mex$169,053 million, down 2.2% year over year. Equipment revenues totaled Mex$31,233 million, up 2.1%.
America Movil gained 1.1 million wireless subscribers in the first quarter. This figure includes 1.9 million postpaid subscribers. Brazil, Austria and Colombia were the primary contributors to postpaid subscriber growth. However, the company witnessed net disconnections of 0.8 million in prepaid subscribers. The company had 301 million wireless subscribers at the end of the first quarter.
On the fixed-line, Broadband and Television platforms, the company ended the quarter with 73.4 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 51.2% to 2,414 million Soles. The robust performance was driven by higher fixed-line and service revenues.
Argentina’s revenues came in at ARS 90,721 million, down 8.3% from the year-ago quarter’s levels. The downside was caused by declining service, fixed lines, and wireless revenues. The reported data for Argentina are presented in line with IAS29, reflecting the implications of inflationary accounting as the Argentinean economy is projected to be hyperinflationary for the first quarter of 2023. The company also stated that Argentina will be left out of all comparisons for consolidated data at constant exchange rates to maintain consistency.
Colombia’s revenues remained constant at COP 3,738 billion, owing to an increase in service revenues and partly offset by lower fixed-line revenues.
Revenues from Mexico, Brazil, Ecuador, Central America, the Caribbean, Austria and Other European regions witnessed year-over-year growth of 8.4%, 11%, 3.8%, 6.2%, 29.8%, 2% and 15.5%, respectively.
Other Quarterly Details
Total costs and expenses were Mex$126,218 million, down 0.7% from the year-ago quarter’s levels. Overall, EBITDA increased 3.2% from the prior-year quarter’s levels to Mex$82,708 million. The EBITDA margin came in at 39.6% compared with 39% in the year-earlier quarter. The company’s operating profit increased 9.7% to Mex$44,125 million.
As of Mar 31, 2022, America Movil had Mex$130,373 million in cash, marketable securities and other short-term investments with Mex$332,861 million of long-term debt.
The company has also approved a share-buyback fund for Mex$20 billion between Apr 2023 to Apr 2024.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended upward during the past month.
The consensus estimate has shifted 57.14% due to these changes.
Currently, Amer Movil has an average Growth Score of C, however its Momentum Score is doing a bit better with a B. Charting a somewhat similar path, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. It comes with little surprise Amer Movil has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.