Here's How FEMSA (FMX) is Placed Just Ahead of Q4 Earnings
Fomento Economico Mexicano, S.A.B. de C.V. FMX, or FEMSA, is slated to report fourth-quarter 2023 earnings on Feb 23. The company is likely to have witnessed top-line growth in the quarter under review.
The Zacks Consensus Estimate for FMX’s fourth-quarter revenues is pegged at $11.2 billion, indicating growth of 18.4% from the year-ago quarter's reported figure.
The Zacks Consensus Estimate for FMX’s 2023 earnings of $5.90 per share suggests 66.2% growth from the year-ago quarter’s reported figure. The consensus estimate for earnings has moved up 2.8% in the past seven days. The consensus mark for the Zacks Rank #1 (Strong Buy) company’s revenues is pegged at $44.4 billion, indicating growth of 32.4% from the year-ago quarter's reported figure.
In the last reported quarter, the company delivered an earnings surprise of 50.9%. It has a trailing four-quarter earnings surprise of 23.2%, 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 witnessing robust trends from growth across all business units, owing to effective growth strategies and robust market demand. The company is also well-placed for growth through investments in digital and technology-driven initiatives, and continued strength in OXXO Mexico and OXXO Gas. FMX’s solid growth prospects, driven by its strategy of creating a distribution platform in the United States, bode well.
FEMSA has been gaining pace in the digital space through its tech and innovation business unit — Digital@FEMSA. The unit has been focused on building a value-added digital and financial ecosystem for end customers and businesses. It has also been inclined toward enabling and leveraging the strategic assets of FEMSA’s core business verticals. Gains from these initiatives are expected to get reflected in the company’s fourth-quarter results.
FMX has been on track with its strategy of creating a 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 has been linked with its plan of investing in adjacent businesses, leveraging capabilities across different markets, and providing an opportunity for attractive growth and risk-adjusted returns. These efforts are expected to have contributed to its top-line performance in the to-be-reported quarter.
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.
However, the company has been witnessing margin pressures, which are expected to have continued in the fourth quarter. FEMSA’s performance is 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.
Stocks Poised to Beat Earnings Estimates
Sprouts Farmers Market SFM currently has an Earnings ESP of +4.52% and a Zacks Rank #2 (Buy). The company is expected to register year-over-year top and bottom-line growth when it reports fourth-quarter 2023 results. The Zacks Consensus Estimate for SFM’s quarterly revenues is pegged at $1.7 billion, suggesting growth of 7.2% from the figure reported in the prior-year quarter.
You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Sprouts Farmers’ quarterly EPS is pegged at 45 cents, indicating an improvement of 7.1% from the year-ago quarter’s actual. SFM recorded an earnings surprise of 11.2% in the last reported quarter.
Inter Parfums IPAR currently has an Earnings ESP of +5.71% and a Zacks Rank #2. The company’s top line is expected to increase year over year when it reports fourth-quarter results. The Zacks Consensus Estimate for IPAR’s quarterly revenues is pegged at $329 million, suggesting growth of 5.9% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Inter Parfums’ quarterly EPS is pegged at 35 cents, which indicates a decline of 50.7% from the year-ago reported figure. IPAR has a trailing four-quarter negative earnings surprise of 45.7%, on average.
Dutch Bros BROS currently has an Earnings ESP of +53.13% and a Zacks Rank #3. BROS is likely to register year-over-year top-line growth when it reports the fourth-quarter 2023 numbers. The Zacks Consensus Estimate for its quarterly revenues is pegged at $254.8 million, which suggests growth of 26.3% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Dutch Bros’ quarterly earnings is pegged at 2 cents per share, suggesting a decline of 33.3% from the year-ago quarter’s reported number. BROS has delivered an earnings beat of 57.1%, on average, in the trailing four quarters.
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Fomento Economico Mexicano S.A.B. de C.V. (FMX) : Free Stock Analysis Report
Inter Parfums, Inc. (IPAR) : Free Stock Analysis Report
Sprouts Farmers Market, Inc. (SFM) : Free Stock Analysis Report
Dutch Bros Inc. (BROS) : Free Stock Analysis Report
