Why Is Amer Movil (AMX) Down 9% Since Last Earnings Report?

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$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$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].