America Movil (AMX) Q3 Earnings and Revenues Decrease Y/Y
America Movil, S.A.B. de C.V. AMX reported net income per ADR of 4 cents for third-quarter 2023, down from 28 cents reported in the prior-year quarter.
Net income in the quarter was Mex$2,028 million or Mex$0.03 per share compared with Mex$17,969 million or Mex$0.28 per share in the year-ago quarter.
The company had a comprehensive financing cost of Mex$29,740 million, up 83.1% from the year-ago quarter’s comprehensive financing costs of Mex$16,238 million.
America Movil, S.A.B. de C.V. Unsponsored ADR Price, Consensus and EPS Surprise
America Movil, S.A.B. de C.V. Unsponsored ADR price-consensus-eps-surprise-chart | America Movil, S.A.B. de C.V. Unsponsored ADR Quote
Revenues
Total quarterly revenues decreased 3.3% to Mex$203,842 million due to poor performance in the Service and Equipment business segments. Also, rising interest rate and unfavorable foreign currency movement were headwinds.
Service revenues were Mex$169,052 million, down 4.3% year over year. Equipment revenues totaled Mex$31,105 million, down 2.6%.
America Movil gained 3 million wireless subscribers in the third quarter. This figure includes 2 million postpaid subscribers. Brazil, Austria and Colombia were the primary contributors to postpaid subscriber growth. The company had 306.2 million wireless subscribers at the third-quarter end.
On the fixed-line, Broadband and Television platforms, the company ended the quarter with 73.4 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 rise of 2.5% to 1,624 million Soles. The uptick was driven by higher service revenues.
Argentina’s revenues came in at ARS 145,053 million, down 7.7% from the year-ago quarter. The downside was caused by declining service, fixed 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 third 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 1.3% to COP 3,739 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 7.5%, 6.4%, 5.5%, 0.3%, and 5.4%, respectively. Revenues from the Caribbean and Ecuador declined 1% and 0.6%, respectively.
Other Quarterly Details
Total costs and expenses were Mex$123,947 million, down 3.1% from the year-ago quarter. Overall, EBITDA decreased 3.6% from the prior-year quarter to Mex$79,896 million. The EBITDA margin came in at 39.2% compared with 39.3% in the year-ago quarter. The company’s operating profit decreased 6.7% to Mex$41,543 million.
Liquidity
As of Sep 30, 2023, America Movil had Mex$102,788 million in cash, marketable securities and other short-term investments with Mex$354,122 million of long-term debt.
Zacks Rank & Stocks to Consider
America Movil currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology space are Asure Software ASUR, Synopsys SNPS and Watts Water Technologies WTS. Asure Software and Synopsys currently sport a Zacks Rank #1 (Strong Buy), whereas Watts Water Technologies carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Asure Software’s 2023 earnings per share (EPS) has increased 5.9% in the past 60 days to 54 cents.
Asure Software’s earnings beat the Zacks Consensus Estimate in all the last four quarters, the average being 676.4%. Shares of ASUR have surged 78.5% in the past year.
The Zacks Consensus Estimate for Synopsys’ 2023 EPS has gained 2.5% in the past 60 days to $11.09. SNPS’ long-term earnings growth rate is 16.4%. Shares of SNPS have surged 72% in the past year.
The Zacks Consensus Estimate for Watts Water’s 2023 EPS has increased 1% in the past 60 days to $7.78. The company’s long-term earnings growth rate is 7.5%.
Watts Water’s earnings beat estimates in all the trailing four quarters, delivering an average surprise of 12.5%. Shares of WTS have rallied 42.4% in the past year.
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