Amer Movil (AMX) Up 10.6% Since Last Earnings Report: Can It Continue?

Core Viewpoint - America Movil's recent earnings report indicates a decline in net income and revenues, raising questions about future performance and investor sentiment leading up to the next earnings release [1][2]. Financial Performance - The net income per ADR for Q1 2024 was 25 cents, down from 51 cents in the prior-year quarter, with total net income at Mex$13,494 million compared to Mex$30,146 million a year ago [2]. - Total quarterly revenues decreased by 2.7% to Mex$203,298 million, primarily due to poor performance in the Equipment segment and unfavorable foreign currency movements [3]. - Service revenues increased by 1.1% year over year to Mex$170,890 million, while equipment revenues fell by 4.1% to Mex$29,963 million [3]. Subscriber Growth - America Movil gained 1.5 million wireless subscribers in Q1 2024, including 1.3 million postpaid subscribers, with Brazil, Austria, and Colombia being the main contributors [3]. Regional Performance - Peru experienced a significant revenue decline of 33.4% to 1,607 million Soles, attributed to lower equipment revenues [4]. - Argentina's revenues decreased by 16.6% to ARS 305,412 million, impacted by declining service and equipment revenues, with the data reflecting hyperinflationary accounting [4]. - Colombia's revenues increased by 1.5% to COP 3,793 billion, driven by higher fixed-line revenues [4]. Cost and Profitability - Total costs and expenses were Mex$122,714 million, down 2.8% from the previous year, while EBITDA decreased by 2.6% to Mex$80,584 million, resulting in an EBITDA margin of 39.6% [6]. - The operating profit fell by 7.6% to Mex$40,758 million [6]. Liquidity Position - As of March 31, 2024, America Movil had Mex$71,280 million in cash and short-term investments, alongside long-term debt of Mex$384,310 million [7]. Market Sentiment and Outlook - Estimates for America Movil have trended downward, with a consensus estimate shift of -31.03% [7]. - The company holds a Zacks Rank of 3 (Hold), indicating expectations for an in-line return in the coming months [8].