A month has gone by since the last earnings report for Amer Movil (AMX). Shares have lost about 9% 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 the most recent earnings report in order to get a better handle on the important catalysts.

America Movil's Q3 Earnings Increase Y/Y

America Movil reported net income per ADR of 11 cents for third-quarter 2024, up from 4 cents in the prior-year quarter. However, the earnings missed the Zacks Consensus Estimate by 73.17%.

Net income in the quarter totaled Mex$6,427 million or Mex$0.10 per share compared with Mex$2,028 million or Mex$0.03 per share in the year-ago quarter.

The company’s comprehensive financing cost was Mex$28,323 million, down 4.8% from the year-ago quarter’s Mex$29,740 million.

Revenues

Total quarterly revenues soared 9.6% to Mex$223,458 million, driven by healthy growth across the Service and Equipment segments businesses. Service revenues were Mex$188,170 million, up 11.3% year over year. Equipment revenues totaled Mex$32,247 million, up 3.7%.

America Movil gained 1.8 million wireless subscribers in the third quarter. This figure includes 1.4 million postpaid subscribers. Brazil, Mexico and Colombia were the primary contributors to postpaid subscriber growth. The company had 315.8 million wireless subscribers at the third-quarter end.

On the fixed-line, Broadband and Television platforms, the company ended the quarter with 74.6 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, Ecuador witnessed a year-over-year revenue decline of 2.3% to $253 million. The downside resulted from a slowdown across all revenue segments owing to various macroeconomic headwinds.

Argentina’s revenues came in at ARS 493,726 million, up 10% from the year-ago quarter. The expansion resulted from increasing service revenues amid a downward trend in equipment revenues. The reported data for Argentina are presented in line with IAS29, reflecting the implications of inflationary accounting, as the Argentinean economy is “deemed” to be hyperinflationary for the third quarter of 2024. 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 4.5% to COP 3,905 billion, owing to strength in equipment revenues. Revenues from Mexico, Brazil, Peru, Central America, and Other European regions witnessed year-over-year growth of 2.3%, 7.4%, 4.1%, 7.5%, and 4.7%, respectively. Revenues from Austria and the Caribbean declined 0.6% and 0.7%, respectively.

Other Quarterly Details

Total costs and expenses were Mex$134,036 million, up 8.1% from the year-ago quarter. Overall, Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) increased 11.9% to Mex$89,422 million. The EBITDA margin came in at 40% compared with 39.2% in the year-ago quarter. The company’s operating profit rose 14.2% to Mex$47,443 million.

Liquidity

As of Sept. 30, 2024, America Movil had Mex$82,809 million in cash, marketable securities and other short-term investments with Mex$428,167 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.

VGM Scores

At this time, 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 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

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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