Here's How FEMSA (FMX) is Placed Just Before Q1 Earnings
Fomento Economico Mexicano, S.A.B. de C.V. FMX or FEMSA is slated to report first-quarter 2023 earnings on Apr 28. The company is likely to have witnessed top and bottom-line growth in the quarter under review.
The Zacks Consensus Estimate for FMX’s first-quarter earnings of 86 cents per share suggests 28.4% growth from the year-ago quarter’s reported figure. The consensus estimate for earnings has been unchanged in the past 30 days. The consensus mark for quarterly revenues is pegged at $7.88 billion, indicating growth of 9.4% from the year-ago quarter's reported figure.
We expect the company’s first-quarter total revenues to increase 9.4% year over year to $7,876.1 million and the bottom line to rise 54.1% to 86 cents per share.
In the last reported quarter, the company delivered a negative earnings surprise of 46.1%. It has a trailing four-quarter negative earnings surprise of 21.7%, on average.
Fomento Economico Mexicano S.A.B. de C.V. Price and EPS Surprise
Fomento Economico Mexicano S.A.B. de C.V. price-eps-surprise | Fomento Economico Mexicano S.A.B. de C.V. Quote
Factors at Play
FEMSA has been gaining from effective growth strategies and robust demand across most markets. Sales momentum, owing to gains across all business units, also bodes well.
The company’s investments in digital and technology-driven initiatives are expected to have contributed to its fourth-quarter performance. Its focus on offering customers more options to make contactless purchases by intensifying digital and technology-driven initiatives across operations has been aiding the digital performance.
The company’s Coca-Cola FEMSA has been leading the way with its omnichannel business, whereas FEMSA Comercio has been progressing with the adoption of digital initiatives. Investments in digital offerings, loyalty programs and fintech platforms bode well. Its OXXO digital wallet, OXXO Premia and loyalty program have also been performing well. Such endeavors are likely to have aided revenues in the to-be-reported quarter.
FEMSA has been on track with its strategy of creating a national distribution platform in the United States through the expansion of its footprint in the specialized distribution industry. The company’s venture in the specialized distribution industry relates to its plan of investing in adjacent businesses, which can leverage capabilities across different markets, providing an opportunity for attractive growth and risk-adjusted returns. Gains from these investments are likely to have boosted the company’s fourth-quarter performance.
However, the company has been witnessing gross margin pressures, which are expected to have continued in the first quarter. FEMSA’s performance is also expected to have been partly hurt by the impacts of supply-chain disruptions and higher raw material costs. Inflation in steel and aluminum prices is expected to have been concerning.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for FEMSA this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
FEMSA has an Earnings ESP of 0.00% and a Zacks Rank #3.
Stocks Poised to Beat Earnings Estimates
Here are some companies that you may want to consider, as our model shows that these have the right combination of elements to deliver an earnings beat.
Colgate-Palmolive CL has an Earnings ESP of +1.43% and currently carries a Zacks Rank of 2. It is likely to register top-line growth while reporting first-quarter 2023 results. The consensus mark for CL’s quarterly revenues is pegged at $4.62 million, which suggests 5% growth from the prior-year quarter’s reported figure. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus mark for Colgate-Palmolive’s quarterly earnings is pegged at 70 cents per share, suggesting a decline of 5.4% from the year-ago quarter’s reported figure. The estimate has been unchanged in the past 30 days. CL has delivered an earnings surprise of 0.35%, on average, in the trailing four quarters.
Hershey HSY currently has an Earnings ESP of +0.47% and a Zacks Rank of 3. It is likely to register increases in the top and bottom lines while reporting first-quarter 2023 results. The Zacks Consensus Estimate for HSY’s quarterly earnings has moved up by a penny in the past seven days to $2.67 per share, indicating growth of 5.5% from the year-ago quarter's figure.
Hershey’s top line is expected to have risen year over year. The Zacks Consensus Estimate for HSY’s quarterly revenues is pegged at $2.9 billion, suggesting growth of 8.8% from the prior-year quarter’s reported figure. HSY has delivered an earnings surprise of 11.3%, on average, in the trailing four quarters.
Keurig Dr Pepper KDP currently has an Earnings ESP of +0.50% and a Zacks Rank of 3. It is likely to register an increase in the top line while reporting first-quarter 2023 results. The Zacks Consensus Estimate for quarterly revenues is pegged at $3.3 billion, implying a rise of 7.1% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for Keurig’s quarterly earnings is pegged at 33 cents per share, suggesting no change from the year-ago quarter’s reported number. The estimate has been unchanged in the past 30 days. KDP has delivered a negative earnings surprise of 0.5%, on average, in the trailing four quarters.
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Hershey Company (The) (HSY) : Free Stock Analysis Report
Fomento Economico Mexicano S.A.B. de C.V. (FMX) : Free Stock Analysis Report
Colgate-Palmolive Company (CL) : Free Stock Analysis Report
Keurig Dr Pepper, Inc (KDP) : Free Stock Analysis Report
