América Móvil Q1 Earnings Analysis
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 7 hours ago
0mins
Should l Buy AMX?
Source: seekingalpha
- Revenue Growth: América Móvil's Q1 revenue increased by 2.1% year-over-year to 236.8 billion pesos, with service revenue up 0.6%, equipment revenue up 7.4%, and other revenue soaring by 107.9%, indicating strong performance in the Latin American market.
- Net Income Surge: The company's net income reached 23.4 billion pesos in Q1, a 25.1% increase, primarily driven by a 12.7% rise in operating profit and a 9.9% reduction in financing costs, showcasing effective management in cost control and profitability.
- EBITDA Performance: The EBITDA margin stood at 39.9%, among the highest levels seen in recent years, reflecting the company's operational leverage, with EBITDA growth outpacing service revenue, indicating healthy business development.
- User Growth Strategy: The company added approximately 3 million postpaid mobile subscribers in the quarter, mainly from Brazil and Mexico, while prepaid subscribers slightly declined, reflecting a strategic pivot towards higher ARPU users.
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Analyst Views on AMX
Wall Street analysts forecast AMX stock price to fall
2 Analyst Rating
0 Buy
2 Hold
0 Sell
Hold
Current: 25.680
Low
19.50
Averages
19.50
High
19.50
Current: 25.680
Low
19.50
Averages
19.50
High
19.50
About AMX
America Movil SAB de CV is a Mexico-based company primarily involved in the telecommunications-services sector. The Company’s scope of activities revolves around telecommunications solutions related to mobile and fixed-line voice services, including airtime, local, domestical, and international long-distance operations, as well as network interconnection services. Furthermore, the Firm is engaged in both wireless and fixed data operations, Internet-access services, as well as Pay TV, which stands for solutions associated with pay per view, programming, and advertising. Additionally, The Company’s business includes services related to providing video, audio, and media, via the Internet to the end user, as well as other services related to the telecommunications-related industries. The activities offered by the Company cover approximately 20 countries across Latin America, Europe, the United States, and more.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
América Móvil Q1 Earnings Analysis
- Revenue Growth: América Móvil's Q1 revenue increased by 2.1% year-over-year to 236.8 billion pesos, with service revenue up 0.6%, equipment revenue up 7.4%, and other revenue soaring by 107.9%, indicating strong performance in the Latin American market.
- Net Income Surge: The company's net income reached 23.4 billion pesos in Q1, a 25.1% increase, primarily driven by a 12.7% rise in operating profit and a 9.9% reduction in financing costs, showcasing effective management in cost control and profitability.
- EBITDA Performance: The EBITDA margin stood at 39.9%, among the highest levels seen in recent years, reflecting the company's operational leverage, with EBITDA growth outpacing service revenue, indicating healthy business development.
- User Growth Strategy: The company added approximately 3 million postpaid mobile subscribers in the quarter, mainly from Brazil and Mexico, while prepaid subscribers slightly declined, reflecting a strategic pivot towards higher ARPU users.
See More
América Móvil to Announce Q1 Earnings on April 21
- Earnings Announcement Schedule: América Móvil is set to release its Q1 2023 earnings report on April 21 after market close, with consensus EPS estimated at $0.45 and revenue expected to reach $13.37 billion, indicating investor interest in the company's performance.
- Earnings Estimate Changes: Over the last three months, EPS estimates have seen no upward revisions and one downward revision, while revenue estimates experienced one upward and one downward revision, reflecting market uncertainty regarding the company's future performance.
- Market Reaction Analysis: Despite the upcoming earnings report, the market's response to América Móvil's stock remains muted, lacking clear buy signals, which may affect investor confidence and stock performance.
- Business Expansion Dynamics: A unit of América Móvil is eyeing fiber assets from Azteca and Total Play, indicating the company's intent to expand in the communications services sector, potentially providing new growth opportunities in the future.
See More
Stock Corrects 13% Amid Iran Conflict
- Stock Correction: The stock corrected by 13% as it entered the final phase of its pattern, indicating a sensitive market response to uncertainties, particularly during the early weeks of the Iran conflict.
- Conflict Impact: Most of the decline occurred during the initial stages of the Iran conflict, reflecting the direct influence of geopolitical risks on investor sentiment, which may lead to short-term market volatility.
- March Performance: Despite the overall decline, the stock only fell by 2.1% for the entire month of March, suggesting relative resilience in the market during the conflict, potentially supported by strong fundamentals.
- Investor Confidence: This correction may impact investor confidence, especially in an uncertain international landscape, prompting investors to reassess their strategies to mitigate potential risks.
See More
H.I.G. Capital Sells Desktop S.A. to Claro
- Transaction Value: H.I.G. Capital has signed an agreement to sell its portfolio company Desktop S.A. to Claro for R$4.0 billion (approximately $750 million), with a share price of R$20.82, reflecting Desktop's strong market performance and attractiveness.
- User Growth: Since H.I.G.'s acquisition, Desktop's subscriber base has surged from approximately 150,000 to over 1.2 million, serving more than 200 cities, indicating its rapid expansion and market penetration in Brazil's internet service sector.
- Network Infrastructure: Desktop's fiber network spans over 58,000 kilometers, reaching approximately 4.8 million homes and supporting its high-speed connectivity business model, further solidifying its position as a leading ISP in Brazil.
- Strategic Implications: This transaction not only showcases H.I.G.'s ability to create value but also highlights Desktop's potential as a strategic asset in the industry, likely attracting more investor interest in Brazil's telecommunications market.
See More
H.I.G. Capital Sells Desktop for R$4 Billion
- Transaction Value: H.I.G. Capital has signed an agreement to sell its portfolio company Desktop to Claro for R$4 billion (approximately $750 million), with a per-share price of R$20.82, reflecting Desktop's strong performance and potential value in the Brazilian market.
- User Growth: Since H.I.G.'s acquisition, Desktop's subscriber base has surged from approximately 150,000 to over 1.2 million, serving more than 200 cities, indicating its rapid expansion and market penetration in Brazil's internet service sector.
- Network Infrastructure: Desktop's fiber network spans over 58,000 kilometers, reaching approximately 4.8 million homes, showcasing its robust capability in delivering high-speed connectivity and further solidifying its market leadership.
- Strategic Implications: This transaction not only highlights H.I.G.'s ability to identify and execute on value creation opportunities but also underscores Desktop's potential as a strategic asset in the industry, likely attracting more investor interest in Brazil's telecommunications market.
See More
Latest Quant Ratings Reveal Performance of Communication Services Companies
- Quant Rating Overview: As the earnings season concludes, investors are focusing on updated quant ratings that provide insights into how companies rank across key factors such as valuation, growth, and profitability, aiding in assessing fundamental changes.
- Top-Rated Companies: Among large-cap communication services firms with market caps over $10 billion, Orange (ORANY) stands out with a quant rating of 4.90, classified as a Strong Buy, indicating a significant strengthening of its fundamentals that may attract more investor interest.
- Low-Rated Companies: In contrast, Fox (FOX) has a quant rating of 1.97, categorized as a Sell, reflecting weak fundamentals that could raise investor concerns about its future performance, potentially impacting its stock price negatively.
- Market Trend Analysis: The shifts in quant ratings not only reveal post-earnings performance but also provide investors with insights for future investment decisions, especially as AI remains a focal point in the 2026 market outlook.
See More
América Móvil Q1 Earnings Analysis
- Revenue Growth: América Móvil's Q1 revenue increased by 2.1% year-over-year to 236.8 billion pesos, with service revenue up 0.6%, equipment revenue up 7.4%, and other revenue soaring by 107.9%, indicating strong performance in the Latin American market.
- Net Income Surge: The company's net income reached 23.4 billion pesos in Q1, a 25.1% increase, primarily driven by a 12.7% rise in operating profit and a 9.9% reduction in financing costs, showcasing effective management in cost control and profitability.
- EBITDA Performance: The EBITDA margin stood at 39.9%, among the highest levels seen in recent years, reflecting the company's operational leverage, with EBITDA growth outpacing service revenue, indicating healthy business development.
- User Growth Strategy: The company added approximately 3 million postpaid mobile subscribers in the quarter, mainly from Brazil and Mexico, while prepaid subscribers slightly declined, reflecting a strategic pivot towards higher ARPU users.
See More
América Móvil to Announce Q1 Earnings on April 21
- Earnings Announcement Schedule: América Móvil is set to release its Q1 2023 earnings report on April 21 after market close, with consensus EPS estimated at $0.45 and revenue expected to reach $13.37 billion, indicating investor interest in the company's performance.
- Earnings Estimate Changes: Over the last three months, EPS estimates have seen no upward revisions and one downward revision, while revenue estimates experienced one upward and one downward revision, reflecting market uncertainty regarding the company's future performance.
- Market Reaction Analysis: Despite the upcoming earnings report, the market's response to América Móvil's stock remains muted, lacking clear buy signals, which may affect investor confidence and stock performance.
- Business Expansion Dynamics: A unit of América Móvil is eyeing fiber assets from Azteca and Total Play, indicating the company's intent to expand in the communications services sector, potentially providing new growth opportunities in the future.
See More
Stock Corrects 13% Amid Iran Conflict
- Stock Correction: The stock corrected by 13% as it entered the final phase of its pattern, indicating a sensitive market response to uncertainties, particularly during the early weeks of the Iran conflict.
- Conflict Impact: Most of the decline occurred during the initial stages of the Iran conflict, reflecting the direct influence of geopolitical risks on investor sentiment, which may lead to short-term market volatility.
- March Performance: Despite the overall decline, the stock only fell by 2.1% for the entire month of March, suggesting relative resilience in the market during the conflict, potentially supported by strong fundamentals.
- Investor Confidence: This correction may impact investor confidence, especially in an uncertain international landscape, prompting investors to reassess their strategies to mitigate potential risks.
See More
H.I.G. Capital Sells Desktop S.A. to Claro
- Transaction Value: H.I.G. Capital has signed an agreement to sell its portfolio company Desktop S.A. to Claro for R$4.0 billion (approximately $750 million), with a share price of R$20.82, reflecting Desktop's strong market performance and attractiveness.
- User Growth: Since H.I.G.'s acquisition, Desktop's subscriber base has surged from approximately 150,000 to over 1.2 million, serving more than 200 cities, indicating its rapid expansion and market penetration in Brazil's internet service sector.
- Network Infrastructure: Desktop's fiber network spans over 58,000 kilometers, reaching approximately 4.8 million homes and supporting its high-speed connectivity business model, further solidifying its position as a leading ISP in Brazil.
- Strategic Implications: This transaction not only showcases H.I.G.'s ability to create value but also highlights Desktop's potential as a strategic asset in the industry, likely attracting more investor interest in Brazil's telecommunications market.
See More
H.I.G. Capital Sells Desktop for R$4 Billion
- Transaction Value: H.I.G. Capital has signed an agreement to sell its portfolio company Desktop to Claro for R$4 billion (approximately $750 million), with a per-share price of R$20.82, reflecting Desktop's strong performance and potential value in the Brazilian market.
- User Growth: Since H.I.G.'s acquisition, Desktop's subscriber base has surged from approximately 150,000 to over 1.2 million, serving more than 200 cities, indicating its rapid expansion and market penetration in Brazil's internet service sector.
- Network Infrastructure: Desktop's fiber network spans over 58,000 kilometers, reaching approximately 4.8 million homes, showcasing its robust capability in delivering high-speed connectivity and further solidifying its market leadership.
- Strategic Implications: This transaction not only highlights H.I.G.'s ability to identify and execute on value creation opportunities but also underscores Desktop's potential as a strategic asset in the industry, likely attracting more investor interest in Brazil's telecommunications market.
See More
Latest Quant Ratings Reveal Performance of Communication Services Companies
- Quant Rating Overview: As the earnings season concludes, investors are focusing on updated quant ratings that provide insights into how companies rank across key factors such as valuation, growth, and profitability, aiding in assessing fundamental changes.
- Top-Rated Companies: Among large-cap communication services firms with market caps over $10 billion, Orange (ORANY) stands out with a quant rating of 4.90, classified as a Strong Buy, indicating a significant strengthening of its fundamentals that may attract more investor interest.
- Low-Rated Companies: In contrast, Fox (FOX) has a quant rating of 1.97, categorized as a Sell, reflecting weak fundamentals that could raise investor concerns about its future performance, potentially impacting its stock price negatively.
- Market Trend Analysis: The shifts in quant ratings not only reveal post-earnings performance but also provide investors with insights for future investment decisions, especially as AI remains a focal point in the 2026 market outlook.
See More
