It has been about a month since the last earnings report for Amer Movil (AMX Quick QuoteAMX - Free Report) . Shares have added about 10.8% 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 the most recent earnings report in order to get a better handle on the important catalysts.

America Movil Q4 Earnings Rise Y/Y

America Movil reported net income per ADR of 33 cents for fourth-quarter 2023, which increased from 22 cents reported in the prior-year quarter.

Net income in the quarter was Mex$18,062 million or Mex$0.29 per share compared with Mex$13,710 million or Mex$0.22 per share in the year-ago quarter.

The company had a comprehensive financing cost of Mex$15,609 million, up 88% from the year-ago quarter’s comprehensive financing costs of Mex$8,301 million.

Revenues

Total quarterly revenues decreased 7.1% to Mex$200,713 million due to poor performance in the Service and Equipment business segments. Also, rising interest rates and unfavorable foreign currency movement were headwinds.

Service revenues were Mex$164,740 million, down 4.6% year over year.

Equipment revenues totaled Mex$33,417 million, down 5.6% year over year.

America Movil gained 3.9 million wireless subscribers in the fourth quarter. This figure includes 2.7 million postpaid subscribers. Brazil, Austria and Argentina were the primary contributors to the postpaid subscriber growth. The company had 310.1 million wireless subscribers at the fourth-quarter end.

On the fixed-line, Broadband and Television platforms, the company ended the quarter with 73.7 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 9.2% to 1,6204 million Soles. The downtick was driven by lower equipment revenues.

Argentina’s revenues came in at ARS 210,592 million, down 10.7% from the year-ago quarter. The downside was caused by declining service, equipment 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 fourth 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 3.8% to COP 3,885 billion, owing to an increase in fixed-line revenues.

Revenues from Mexico, Brazil, Central America, Austria and Other European regions witnessed year-over-year growth of 0.8%, 5%, 6.2%, 0.6%, and 4.3%, respectively. Revenues from the Caribbean and Ecuador declined 14% and 6.2%, respectively.

Other Quarterly Details

Total costs and expenses were Mex$122,446 million, down 6.7% from the year-ago quarter. Overall, EBITDA decreased 7.7% from the prior-year quarter to Mex$78,267 million. The EBITDA margin came in at 39% compared with 39.2% in the year-ago quarter. The company’s operating profit decreased 6.4% to Mex$41,808 million.

Liquidity

As of Dec 31, 2023, America Movil had Mex$100,353 million in cash, marketable securities and other short-term investments with Mex$339,713 million of long-term debt.

How Have Estimates Been Moving Since Then?

Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.