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].

A month has gone by since the last earnings report for Amer Movil (AMX) . Shares have lost about 9% in that time frame, underperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is Amer Movil due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts. America Movil's Q3 Earnings Increase Y/YAmerica Movil r ...

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]

Amer Movil (AMX) came out with quarterly earnings of $0.11 per share, missing the Zacks Consensus Estimate of $0.41 per share. This compares to earnings of $0.04 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -73.17%. A quarter ago, it was expected that this telecommunications company would post earnings of $0.20 per share when it actually produced a loss of $0.02, delivering a surprise of -110%.Over the last four quarters, t ...

Group 1 - The Zacks Rank system focuses on earnings estimates and revisions to identify strong stocks, with a particular emphasis on value investing, which seeks undervalued companies in the market [1] - Value investors utilize traditional analysis on key valuation metrics, such as P/E and P/S ratios, to find stocks that are believed to be undervalued [1] - The Style Scores system includes a "Value" category, where stocks with "A" grades for Value and high Zacks Ranks are considered among the best value stocks available [1] Group 2 - America Movil, S.A.B. de C.V. Unsponsored ADR (AMX) has a Zacks Rank of 2 (Buy) and an A grade for Value, with a P/E ratio of 9.24 compared to the industry average of 10.07 [2] - Over the past 52 weeks, AMX's Forward P/E has fluctuated between 9.17 and 13.04, with a median of 11.32 [2] - AMX's P/S ratio is 1.05, which is lower than the industry's average P/S of 1.32, indicating potential undervaluation [2] Group 3 - Ceragon Networks (CRNT) is also a 2 (Buy) stock with a Value score of A, featuring a P/B ratio of 1.53 compared to the industry's price-to-book ratio of 1.20 [3] - CRNT's P/B ratio has ranged from 1.01 to 2.07 over the past year, with a median of 1.61 [3] - Both AMX and CRNT are highlighted as impressive value stocks due to their strong earnings outlook and current undervaluation [3]