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]

Core Insights - Fomento Economico Mexicano, S.A.B. de C.V. (FMX) is expected to report third-quarter 2025 earnings on October 28, with projected revenue growth of 7.3% year-over-year to $11.17 billion [1] - The consensus estimate for quarterly earnings is $1.06 per share, reflecting a 22.6% decline from the previous year, although the estimate has increased by 2.8% in the last week [2] Business Performance - FEMSA has been experiencing growth across its business units, supported by effective growth strategies and investments in digital initiatives, particularly in OXXO Gas [3][9] - The company is advancing its strategy to create a distribution platform in the U.S. through expansion in the specialized distribution industry, which is expected to enhance top-line performance [5][9] Digital Initiatives - FEMSA's Digital@FEMSA unit is focused on building a digital and financial ecosystem, with successful products like the OXXO digital wallet and loyalty programs [4] Cost Pressures - The company is facing margin pressures due to persistent cost challenges, including inflation, labor expenses, and supply-chain inefficiencies, which are likely to impact profitability in the upcoming quarter [6][9] Stock Performance - FMX shares have decreased by 9.3% over the past six months, underperforming the industry and broader market indices [10] - The company is trading at a forward 12-month P/E ratio of 22.43, higher than the industry average of 18.36 but lower than the S&P 500 average of 23.39 [10]