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Why Is Amer Movil (AMX) Down 5.6% Since Last Earnings Report?
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A month has gone by since the last earnings report for Amer Movil (AMX - Free Report) . Shares have lost about 5.6% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Amer Movil due for a breakout? 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 catalysts.
America Movil Q2 Earnings Rise Y/Y, Revenues Fall
America Movil reported net income per ADR of 46 cents for second-quarter 2023, up from 21 cents reported in the prior-year quarter.
Net income in the June quarter was Mex$25,875 million or Mex$0.41 per share compared with Mex$13,683 million or Mex$0.21 per share in the year-ago quarter.
The company had a comprehensive financing cost of Mex$2,104 million, down 88.1% from the year-earlier quarter’s comprehensive financing costs of Mex$17,614 million.
Revenues
Total quarterly revenues decreased 4.6% to Mex$202,532 million due to poor performance in the Service and Equipment business segment.
Service revenues were Mex$169,206 million, down 4.2% year over year. Equipment revenues totaled Mex$31,103 million, down 7.5%.
America Movil gained 2.2 million wireless subscribers in the first quarter. This figure includes 1.5 million postpaid subscribers. Brazil, Austria and Colombia were the primary contributors to postpaid subscriber growth. The company had 303 million wireless subscribers at the second-quarter end.
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 a year-over-year revenue decline of 0.9% to 1,584 million Soles. The downtick was driven by lower equipment and wireless revenues.
Argentina’s revenues came in at ARS 111,881 million, down 6.2% from the year-ago quarter. 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 second quarter of 2023. The company also stated that Argentina would be left out of all comparisons for consolidated data at constant exchange rates to maintain consistency.
Colombia’s revenues increased 2.8% to COP 3,792 billion, owing to an increase in service revenues and fixed-line revenues.
Revenues from Mexico, Brazil, Ecuador, Central America, Austria and Other European regions witnessed year-over-year growth of 3.6%, 7.6%, 1.9%, 5.9%, 3.9%, and 11%, respectively. Revenues from the Caribbean were constant.
Other Quarterly Details
Total costs and expenses were Mex$123,833 million, down 5.1% from the year-ago quarter. Overall, EBITDA decreased 3.8% from the prior-year quarter to Mex$78,699 million. The EBITDA margin came in at 38.9% compared with 38.5% in the year-earlier quarter. The company’s operating profit decreased 2.8% to Mex$40,308 million.
Liquidity
As of Jun 30, 2023, America Movil had Mex$120,238 million in cash, marketable securities and other short-term investments with Mex$318,350 million of long-term debt.
The company has also approved a share-buyback fund for Mex$20 billion between April 2023 and April 2024.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
The consensus estimate has shifted -15.69% due to these changes.
VGM Scores
Currently, Amer Movil has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. However, the stock was allocated a grade of A on the value side, putting it in the top 20% 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.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Notably, Amer Movil has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
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Why Is Amer Movil (AMX) Down 5.6% Since Last Earnings Report?
A month has gone by since the last earnings report for Amer Movil (AMX - Free Report) . Shares have lost about 5.6% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Amer Movil due for a breakout? 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 catalysts.
America Movil Q2 Earnings Rise Y/Y, Revenues Fall
America Movil reported net income per ADR of 46 cents for second-quarter 2023, up from 21 cents reported in the prior-year quarter.
Net income in the June quarter was Mex$25,875 million or Mex$0.41 per share compared with Mex$13,683 million or Mex$0.21 per share in the year-ago quarter.
The company had a comprehensive financing cost of Mex$2,104 million, down 88.1% from the year-earlier quarter’s comprehensive financing costs of Mex$17,614 million.
Revenues
Total quarterly revenues decreased 4.6% to Mex$202,532 million due to poor performance in the Service and Equipment business segment.
Service revenues were Mex$169,206 million, down 4.2% year over year. Equipment revenues totaled Mex$31,103 million, down 7.5%.
America Movil gained 2.2 million wireless subscribers in the first quarter. This figure includes 1.5 million postpaid subscribers. Brazil, Austria and Colombia were the primary contributors to postpaid subscriber growth. The company had 303 million wireless subscribers at the second-quarter end.
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 a year-over-year revenue decline of 0.9% to 1,584 million Soles. The downtick was driven by lower equipment and wireless revenues.
Argentina’s revenues came in at ARS 111,881 million, down 6.2% from the year-ago quarter. 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 second quarter of 2023. The company also stated that Argentina would be left out of all comparisons for consolidated data at constant exchange rates to maintain consistency.
Colombia’s revenues increased 2.8% to COP 3,792 billion, owing to an increase in service revenues and fixed-line revenues.
Revenues from Mexico, Brazil, Ecuador, Central America, Austria and Other European regions witnessed year-over-year growth of 3.6%, 7.6%, 1.9%, 5.9%, 3.9%, and 11%, respectively. Revenues from the Caribbean were constant.
Other Quarterly Details
Total costs and expenses were Mex$123,833 million, down 5.1% from the year-ago quarter. Overall, EBITDA decreased 3.8% from the prior-year quarter to Mex$78,699 million. The EBITDA margin came in at 38.9% compared with 38.5% in the year-earlier quarter. The company’s operating profit decreased 2.8% to Mex$40,308 million.
Liquidity
As of Jun 30, 2023, America Movil had Mex$120,238 million in cash, marketable securities and other short-term investments with Mex$318,350 million of long-term debt.
The company has also approved a share-buyback fund for Mex$20 billion between April 2023 and April 2024.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
The consensus estimate has shifted -15.69% due to these changes.
VGM Scores
Currently, Amer Movil has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. However, the stock was allocated a grade of A on the value side, putting it in the top 20% 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.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Notably, Amer Movil has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.