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Amer Movil (AMX) Up 6.6% Since Last Earnings Report: Can It Continue?

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A month has gone by since the last earnings report for Amer Movil (AMX - Free Report) . Shares have added about 6.6% 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 latest earnings report in order to get a better handle on the important drivers.

America Movil's Q2 Earnings Increase Y/Y

America Movil reported net income per ADR of 38 cents for second-quarter 2025 against net loss per ADR of 2 cents reported in the prior-year quarter. The earnings figure, however, missed the Zacks Consensus Estimate of 49 cents.

Net income in the quarter was Mex$22,282 million or Mex$0.37 per share against net loss of Mex$1,093 million or Mex$0.02 per share in the year-ago quarter. The company's comprehensive financing cost was Mex$7,729 million, down 80.8% from the year-ago quarter’s Mex$40,210 million.

Top-Line Details

Total quarterly revenues soared 13.8% to Mex$233,785 million, driven by increasing momentum across the Service and Equipment segments. Service revenues were Mex$198,540 million, up 13.4% year over year. Equipment revenues totaled Mex$32,911 million, rising 17.3%.

America Movil gained 1.7 million wireless subscribers in the second quarter. This figure includes 2.9 million postpaid subscribers, with Brazil contributing the most at 1.4 million, followed by Colombia with 199,000 and Mexico with 102,000. In the prepaid segment, it recorded a net loss of 1.1 million subscribers, mainly due to disconnections in Brazil, Chile and Honduras.

On the fixed-line, Broadband and Television platforms, the company ended the quarter with 78 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, Colombia witnessed a year-over-year revenue expansion of 7.6%, driven by solid growth in service revenue, which accelerated 6.1% year over year. Gains were evident across both fixed and mobile platforms. In the mobile segment, strong momentum around its market-leading 5G network continued to fuel performance, pushing service revenue growth to 7.4%. Prepaid revenue rose 8.4% year over year, while postpaid revenue increased 6.9%.

Argentina’s revenues reached ARS 633,865 million, a 9.9% increase year over year. The country’s economy continued to recover, supported by strict fiscal policies, stabilized monetary conditions and a flexible exchange rate system. As inflation decreased, Claro continued to perform well. The data for Argentina are reported under IAS29, reflecting the effects of inflationary accounting, as the Argentine economy is "deemed” to be hyperinflationary for the second quarter of 2025. It also stated that Argentina would be excluded from all comparisons of consolidated data at constant exchange rates to ensure consistency.

Central America’s revenues increased 10.1% to $721 million, owing to continued strength across Service and Equipment revenues. Revenues from Austria, Brazil, Peru and Mexico witnessed year-over-year growth of 4.1%, 6.1%, 4.7%, and 4.7%, respectively. Revenues from Ecuador and the Caribbean declined 1% and 0.4%, respectively.

Other Quarterly Details

Total costs and expenses were Mex$141,375 million, up 15.5% from the year-ago quarter.

Overall, earnings before interest, taxes, depreciation and amortization (EBITDA) increased 11.2% to Mex$92,409 million. The EBITDA margin came in at 39.5% compared with 40.4% in the year-ago quarter.

The company’s operating profit rose 4% to Mex$47,338 million.

Liquidity

As of June 30, 2025, America Movil had Mex$92,730 million in cash, marketable securities and other short-term investments with Mex$453,681 million of long-term debt.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a upward trend in estimates review.

The consensus estimate has shifted 28.57% 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 D. However, the stock has a score 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.

Outlook

Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. Interestingly, Amer Movil has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.


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