Core Insights - America Movil, S.A.B. de C.V. (AMX) reported a net income per ADR of 30 cents for Q1 2025, an increase from 25 cents in the prior year, but missed the Zacks Consensus Estimate by 6.25% [1] - Total quarterly revenues increased by 14.1% to Mex$232,038 million, driven by growth in both Service and Equipment segments [3] - The company gained 2.4 million postpaid subscribers in Q1, with Brazil contributing the most [4] Financial Performance - Net income for the quarter was Mex$18,703 million, compared to Mex$13,494 million in the same quarter last year [1] - Comprehensive financing costs decreased by 2% to Mex$13,440 million from Mex$13,708 million [1] - Total costs and expenses rose by 14.9% to Mex$140,990 million [9] - EBITDA increased by 13% to Mex$91,048 million, with an EBITDA margin of 39.2% [11] Subscriber Metrics - The company ended the quarter with 324 million wireless subscribers, with a net loss of 1 million prepaid subscribers primarily in Mexico and Brazil [4] - In Mexico, postpaid revenues grew by 5.5%, while prepaid revenue fell by 2.5% due to economic slowdown [6] Regional Performance - Mexico's revenues declined by 2.3% to Mex$82,107 million, mainly due to a 14.3% drop in equipment sales [6] - Argentina's revenues increased by 28.4% to ARS 589,836 million, supported by improved economic activity and consumer spending [7] - Central America's revenues rose by 16.4% to $702 million, driven by strong performance in Service and Equipment revenues [8] Liquidity Position - As of March 31, 2025, the company had Mex$88,363 million in cash and marketable securities, alongside long-term debt of Mex$465,263 million [12]

Group 1: Earnings Performance - Amer Movil reported quarterly earnings of $0.30 per share, missing the Zacks Consensus Estimate of $0.32 per share, but showing an increase from $0.25 per share a year ago, resulting in an earnings surprise of -6.25% [1] - The company posted revenues of $11.36 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 0.68%, although this represents a decline from year-ago revenues of $11.98 billion [2] - Over the last four quarters, Amer Movil has not surpassed consensus EPS estimates, but has topped consensus revenue estimates two times [2] Group 2: Stock Performance and Outlook - Amer Movil shares have increased by approximately 19.9% since the beginning of the year, contrasting with the S&P 500's decline of -5.5% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is $0.34 on revenues of $11.26 billion, and $1.45 on revenues of $46.4 billion for the current fiscal year [7] Group 3: Industry Context - The Wireless Non-US industry, to which Amer Movil belongs, is currently ranked in the top 34% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors or through tools like the Zacks Rank [5][6]

Core Insights - Michael Dion is an expert in FP&A, Corporate Finance, and Small Business with 12 years of experience in Fortune 100 companies and various industries [1] - He founded F9 Finance to assist finance professionals and small business owners in understanding finance and accounting concepts [1] - Dion's investment strategy focuses on identifying value opportunities where market reactions to news are disproportionate, emphasizing strong fundamentals and dividends [1] Industry and Company Analysis - Dion has finance experience across multiple sectors including Telecom, Media and Entertainment, Hospitality, and Construction [1] - His approach highlights the importance of cash flow for both companies and investors, indicating a focus on financial health and sustainability [1]

Financial Data and Key Metrics Changes - The fourth quarter revenue increased by 18% in Mexican peso terms to MXN 237 billion, with service revenue growing by 19.1% and EBITDA by 16.4% to MXN 91 billion [9][12][15] - Net income for the fourth quarter was MXN 9.5 billion, a decrease of 47.5% year-on-year due to higher comprehensive financing costs, totaling MXN 30 billion, with nearly half attributed to foreign exchange losses [15][16] - Net debt at the end of the year stood at MXN 488 billion, with a net debt to EBITDA ratio of 1.44x [16][17] Business Line Data and Key Metrics Changes - Postpaid subscribers increased by 2.1 million in the fourth quarter, with Brazil contributing 655,000, Colombia 178,000, and Mexico 141,000 [7][9] - Prepaid platform saw a net disconnection of 1.3 million, with Brazil losing 1.8 million but Mexico gaining 302,000 [8][9] - Fixed line segment added 320,000 broadband accesses, with 132,000 in Mexico, 75,000 in Brazil, and 45,000 in Argentina [8] Market Data and Key Metrics Changes - The Brazilian real depreciated by 13.7% against the dollar, followed by the Chilean peso at 11% and the euro at 7% [6] - Mobile service revenue grew by 6.2% year-on-year in the fourth quarter, with fixed line service revenue climbing 7.4% [13][14] Company Strategy and Development Direction - The company is focused on modernizing networks and expanding 5G coverage, particularly in Chile, with a CapEx guidance of around $250 million for 2025 [23][120] - The management expressed confidence in the corporate segment, expecting it to grow significantly, with a focus on adding value through bundled services [48][80] Management's Comments on Operating Environment and Future Outlook - Management noted a stronger-than-expected labor market and economic activity, leading to revisions in expectations regarding future policy rate reductions by the Fed [6] - The company is cautious about the economic slowdown affecting prepaid recharges, particularly in Mexico [60][128] Other Important Information - The company plans to begin reporting Chilean results in the first quarter of 2025, consolidating ClaroVTR's operations [119] - The pension plan outflows are expected to decline over the next decade as fewer people are being pensioned [84] Q&A Session Summary Question: CapEx guidance for the year and concerns about the MVNO deal with Nubank - Management confirmed they are on track with the three-year CapEx guidance, including Chile, and expressed no concerns about potential cannibalization from the Nubank deal [22][25] Question: CapEx guidance and competitive environment in Brazil - Management stated they expect to remain at the low end of the CapEx guidance and noted a stable competitive environment in Brazil [30][31] Question: Pricing environment for Mexican broadband and M&A appetite in Argentina - Management indicated no plans to increase prices for broadband and stated they are open to M&A opportunities in Argentina but have not engaged in discussions [44][52] Question: Prepaid revenue trends and competitive dynamics in Mexico - Management reported stable competition in prepaid and noted a slowdown in the economy affecting recharge trends [60][128] Question: Regulatory environment in Mexico and Telmex's broadband goals - Management acknowledged the new regulatory environment and expressed a desire to regain market share in broadband [68][70] Question: Growth in corporate networks and pension plan outflows - Management reported a 12.3% growth in corporate networks and expects pension outflows to decline in the future [80][84] Question: Mobile competition in Brazil and debt profile - Management described the competitive landscape in Brazil as stable and detailed their approach to managing debt exposure [98][104]

Core Insights - America Movil reported a net income per ADR of 15 cents for Q4 2024, a decrease from 33 cents in the same quarter last year, missing the Zacks Consensus Estimate by 51.6% [1][2] - The company's total quarterly revenues increased by 18% to Mex$236,940 million, driven by strong performance in both Service and Equipment segments [4] - The company gained 852,000 wireless subscribers in Q4, with a net increase of 2.1 million postpaid subscribers, while the prepaid segment saw a decline of 1.3 million users [5] Financial Performance - Net income for the quarter was Mex$9,480 million, down from Mex$18,062 million in the prior-year quarter [2] - Comprehensive financing costs rose by 91.2% to Mex$29,850 million from Mex$15,609 million in the previous year [2] - Total costs and expenses increased by 19.1% to Mex$145,832 million, while EBITDA rose by 16.4% to Mex$91,108 million, resulting in an EBITDA margin of 38.5% [10] Subscriber and Revenue Growth - The company ended Q4 with 323 million wireless subscribers and 78 million revenue-generating units in fixed-line, Broadband, and Television platforms [5] - Argentina's revenues increased by 20.2% to ARS 547,884 million, while Colombia's revenues rose by 12.2% to COP 4,360 billion [7][8] - Revenues from the Caribbean declined by 5.2% to $476 million due to macroeconomic pressures [6] Market Performance - Following the earnings announcement, America Movil's shares gained 1.2%, closing at $14.72 on February 11, 2025, although the stock has lost 12.7% over the past year [3]

Earnings Performance - Amer Movil reported quarterly earnings of $0.15 per share, missing the Zacks Consensus Estimate of $0.31 per share, and down from $0.33 per share a year ago, representing an earnings surprise of -51.61% [1] - The company posted revenues of $11.8 billion for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 0.81%, compared to year-ago revenues of $11.45 billion [2] Stock Performance and Outlook - Amer Movil shares have increased by approximately 2.9% since the beginning of the year, while the S&P 500 has gained 3.2% [3] - The company's earnings outlook is mixed, with current consensus EPS estimates of $0.45 for the coming quarter and $1.60 for the current fiscal year, with revenues expected to be $11.15 billion and $45.42 billion respectively [7] Industry Context - The Wireless Non-US industry, to which Amer Movil belongs, is currently ranked in the bottom 46% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Amer Movil's stock performance [5]

Core Viewpoint - Amer Movil (AMX) is anticipated to report a year-over-year decline in earnings despite an increase in revenues for the quarter ended December 2024, with actual results being a significant factor influencing its near-term stock price [1][2]. Financial Expectations - The consensus estimate for Amer Movil's quarterly earnings is $0.31 per share, reflecting a year-over-year decrease of 6.1%. Revenues are projected to be $11.71 billion, which is a 2.3% increase from the same quarter last year [3]. Estimate Revisions - Over the past 30 days, the consensus EPS estimate has been revised 15.39% higher, indicating a reassessment by analysts of their initial estimates [4]. - The Most Accurate Estimate aligns with the Zacks Consensus Estimate, resulting in an Earnings ESP of 0%, suggesting no recent differing analyst views [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive or negative reading can predict the deviation of actual earnings from the consensus estimate, with a positive reading being a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [6][8]. Historical Performance - In the last reported quarter, Amer Movil was expected to post earnings of $0.41 per share but only achieved $0.11, resulting in a surprise of -73.17%. Over the last four quarters, the company has only beaten consensus EPS estimates once [12][13]. Conclusion - Amer Movil does not currently appear to be a strong candidate for an earnings beat, and investors should consider other factors when making decisions regarding this stock ahead of its earnings release [16].

Core Viewpoint - America Movil's recent earnings report shows a year-over-year increase in net income, but it missed analysts' expectations significantly, leading to a decline in share price over the past month [1][2]. Financial Performance - The net income per ADR for Q3 2024 was 11 cents, up from 4 cents in the prior year, but missed the Zacks Consensus Estimate by 73.17% [2]. - Total quarterly revenues increased by 9.6% to Mex$223,458 million, driven by growth in both Service and Equipment segments [3]. - Service revenues reached Mex$188,170 million, reflecting an 11.3% year-over-year increase, while Equipment revenues totaled Mex$32,247 million, up 3.7% [3]. Subscriber Growth - America Movil gained 1.8 million wireless subscribers in Q3, including 1.4 million postpaid subscribers, with Brazil, Mexico, and Colombia being the main contributors [4]. - The total number of wireless subscribers reached 315.8 million by the end of the third quarter [4]. Regional Performance - Ecuador experienced a revenue decline of 2.3% year-over-year to $253 million due to macroeconomic challenges [5]. - Argentina's revenues increased by 10% to ARS 493,726 million, driven by service revenue growth, despite a decline in equipment revenues [6]. - Colombia's revenues rose by 4.5% to COP 3,905 billion, supported by strong equipment revenue [7]. - Other regions, including Mexico, Brazil, Peru, Central America, and Other European countries, showed year-over-year revenue growth ranging from 2.3% to 7.5%, while Austria and the Caribbean saw slight declines [7]. Cost and Profitability - Total costs and expenses increased by 8.1% to Mex$134,036 million, while EBITDA rose by 11.9% to Mex$89,422 million, resulting in an EBITDA margin of 40% [8]. - Operating profit increased by 14.2% to Mex$47,443 million [8]. Liquidity Position - As of September 30, 2024, America Movil had Mex$82,809 million in cash and short-term investments, alongside Mex$428,167 million in long-term debt [9]. Analyst Sentiment - Analysts have not made any earnings estimate revisions in the past two months, indicating a period of stability in expectations [10]. - America Movil holds a Zacks Rank 3 (Hold), suggesting an expectation of an in-line return in the coming months [12]. Investment Scores - The company has a strong Growth Score of A, a lower Momentum Score of D, and an overall aggregate VGM Score of A, placing it in the top 20% for value investment strategy [11].

Financial Data and Key Metrics Changes - In Q3 2024, total revenue reached MXN 223 billion, with service revenue growing 11.3% in Mexican peso terms and EBITDA increasing by 11.9% [10][12] - Net profit for the quarter was MXN 6.4 billion, nearly tripling from the previous year, equivalent to MXN 0.10 per share or $0.11 per ADR [12] - Net debt at the end of September was MXN 433 billion, reflecting an increase of MXN 7.3 billion since December 2023 [13] Business Line Data and Key Metrics Changes - The company added 1.8 million subscribers in Q3, with 1.4 million being postpaid [8] - Mobile service revenue growth accelerated to 5.2%, while fixed line service revenue rose by 5.9% [11] - Broadband revenue growth decelerated slightly to 7.4%, while corporate networks revenue expanded by 10.1% [11] Market Data and Key Metrics Changes - In Mexico, prepaid segment net additions were 468,000, with Colombia leading at 251,000 [9] - Brazil and Colombia showed improved steady revenue growth, while Central America outperformed previous quarters [11] - The company experienced a slight increase in churn in Mexico attributed to economic conditions [31] Company Strategy and Development Direction - The company is focusing on upgrading its network to fiber, with 84% of customers now connected to fiber [20] - There are no current M&A plans, with a focus on organic growth and technology upgrades [52] - The company aims to maintain its competitive edge through digitalization and customer care improvements [52] Management's Comments on Operating Environment and Future Outlook - Management noted that prepaid revenue growth remains stable despite economic challenges, with postpaid revenues performing well [25][26] - The outlook for 2025 is positive, with expectations of continued growth in both prepaid and postpaid segments [23] - The company is optimistic about maintaining its market position and improving service quality across Latin America [58] Other Important Information - The company received its third ESG rating upgrade by MSCI, reflecting improvements in corporate governance and data security [13] - Capital expenditures for the year are on target at approximately $7.2 billion [17] Q&A Session Summary Question: Update on competitive dynamics in the fixed broadband market in Mexico - Management acknowledged increased competition, particularly from Telmex, which has upgraded its network significantly [18] Question: CapEx guidance for 2024 - The target remains around $7.2 billion, with no significant changes expected [17] Question: Trends in prepaid and postpaid subscriber activity - Prepaid activity is sensitive to economic conditions, while postpaid is performing well with upgrades and increased data offerings [23][25] Question: Competitive dynamics in Brazilian broadband - The company maintains a leading position in Brazil, with ongoing upgrades to deliver high-speed internet [31] Question: Net debt strategy and FX impacts - The company is not looking to take on additional debt and aims to maintain its leverage ratio [38] Question: CapEx plans for Chile - CapEx for Chile will be consolidated starting November, but no significant changes are expected [41] Question: Shareholder remuneration and CapEx direction amid currency depreciation - No changes are anticipated in shareholder remuneration or CapEx targets despite currency fluctuations [50] Question: M&A opportunities in Latin America - Currently, there are no M&A opportunities being pursued, with a focus on organic growth [52] Question: Pricing dynamics in mobile for Brazil - The focus will be on upselling rather than direct price hikes to enhance ARPU [56]

Core Insights - America Movil reported a net income per ADR of 11 cents for Q3 2024, an increase from 4 cents in the same quarter last year, but fell short of the Zacks Consensus Estimate by 73.17% [1] - Total quarterly revenues increased by 9.6% to Mex$223,458 million, driven by growth in both Service and Equipment segments [2] - The company gained 1.8 million wireless subscribers in Q3, including 1.4 million postpaid subscribers, with Brazil, Mexico, and Colombia being the main contributors [2] Financial Performance - Net income for the quarter was Mex$6,427 million, compared to Mex$2,028 million in the prior year [1] - Comprehensive financing costs decreased by 4.8% to Mex$28,323 million from Mex$29,740 million [1] - Total costs and expenses rose by 8.1% to Mex$134,036 million, while EBITDA increased by 11.9% to Mex$89,422 million, resulting in an EBITDA margin of 40% [6] Regional Performance - Revenues from Argentina increased by 10% to ARS 493,726 million, attributed to rising service revenues despite a decline in equipment revenues [4] - Colombia's revenues grew by 4.5% to COP 3,905 billion, driven by strong equipment sales [4] - Ecuador experienced a revenue decline of 2.3% to $253 million due to macroeconomic challenges [3] Subscriber Growth - The company ended the quarter with 315.8 million wireless subscribers, including 74.6 million revenue-generating units in fixed-line, Broadband, and Television platforms [2] Market Reaction - Following the earnings announcement, America Movil's shares rose by 2% in pre-market trading on October 16, 2024, although the stock has decreased by 4.1% over the past year [1]