Amer Movil’s Quarterly Results Fall Short of Expectations

Amer Movil (AMX) reported quarterly earnings of $0.11 per share, which is below the Zacks Consensus Estimate of $0.41 per share. This is an improvement from earnings of $0.04 per share from the same quarter last year. The reported figures have been adjusted for non-recurring items.

This quarterly report represents an earnings surprise of -73.17%. In the previous quarter, analysts anticipated earnings of $0.20 per share; however, the company instead posted a loss of $0.02, leading to a surprise of -110%.

Over the last four quarters, Amer Movil has only exceeded consensus EPS estimates once.

As part of the Zacks Wireless Non-US industry, Amer Movil achieved revenues of $11.82 billion for the quarter ending September 2024, falling short of the Zacks Consensus Estimate by 1.27%. This marks a decline compared to revenues of $11.95 billion for the same period last year. The company has only topped revenue estimates once in the last year.

The stock’s price movement following this earnings report and future earnings expectations will largely hinge on management’s comments during the earnings call.

Since the start of the year, Amer Movil shares have decreased by approximately 11.7%, while the S&P 500 has increased by 22.9%.

Future Prospects for Amer Movil

As Amer Movil has struggled compared to the broader market this year, investors are left wondering about the direction of the stock.

While there are no straightforward answers, looking at the earnings outlook can offer some insights. This includes not only the current consensus earnings expectations for the upcoming quarters but also recent changes in those expectations.

Research shows that there is a strong link between short-term stock movements and trends in earnings estimate revisions. Investors may track these revisions themselves or use useful tools like the Zacks Rank, known for effectively utilizing earnings estimate revisions.

Ahead of the most recent earnings report, the revisions trend for Amer Movil appears favorable. Although revisions could shift following the recent earnings announcement, the current status assigns a Zacks Rank of #2 (Buy) to the stock, indicating expectations of outperforming the market soon. A complete list of today’s Zacks #1 Rank (Strong Buy) stocks is available here.

It will be interesting to observe any shifts in estimates for the upcoming quarters and the current fiscal year. Currently, the consensus EPS estimate is $0.61 with $11.99 billion in revenues for the next quarter, and $1.39 with $47.83 billion in revenues for the current fiscal year.

It’s crucial to recognize that the industry outlook can significantly influence the stock’s performance as well. The Zacks Industry Rank places Wireless Non-US in the top 18% of over 250 Zacks industries. Studies have shown that the top half of Zacks-ranked industries tend to outperform the bottom half by more than two to one.

Another company in the same sector, Millicom International Cellular SA (TIGO), has yet to report its results for the quarter ending September 2024. Analysts expect it to announce quarterly earnings of $0.68 per share, marking a year-over-year increase of +2366.7%. The consensus EPS estimate has remained stable over the past 30 days, with revenue projections at $1.46 billion, up 2.2% from the previous year.

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The views and opinions expressed herein are those of the author, not necessarily those of Nasdaq, Inc.