FEMSA Q4 Earnings on The Horizon: Will It Surprise Investors?

Core Insights - Fomento Economico Mexicano, S.A.B. de C.V. (FMX) is expected to report fourth-quarter 2025 earnings on February 25, with anticipated growth in both revenue and earnings [1][9] Revenue and Earnings Estimates - The Zacks Consensus Estimate for FMX's fourth-quarter revenues is $12.4 billion, reflecting a growth of 24.6% compared to the same quarter last year [1][9] - The consensus estimate for quarterly earnings is $1.53 per share, a significant increase from 46 cents reported in the previous year [2][9] - The earnings estimate has decreased by one cent in the past 30 days [2] Business Growth Factors - FEMSA is experiencing growth across its business units, supported by effective growth strategies and investments in digital and technology-driven initiatives [3] - The Digital@FEMSA unit is focused on creating a digital and financial ecosystem, with successful products like the OXXO digital wallet and loyalty program [3] - The company is expanding its footprint in the specialized distribution industry, which is part of its strategy to invest in adjacent businesses and leverage capabilities across different markets [4] Cost Pressures - FEMSA is facing cost pressures from inflation, rising labor expenses, and supply-chain inefficiencies, which may negatively impact profitability [5] Earnings Prediction - The company's Earnings ESP is +3.92%, and it holds a Zacks Rank of 3, indicating a potential earnings beat [6] Market Performance and Valuation - FEMSA's shares have increased by 8.4% over the past three months, while the industry has grown by 12.5% [7] - The company is trading at a forward 12-month P/E multiple of 24.64X, which is higher than the industry average of 20.08X [7]