América Móvil, S.A.B. de C.V. Reported A Surprise Loss, And Analysts Have Updated Their Forecasts

Shareholders might have noticed that América Móvil, S.A.B. de C.V. (BMV:AMXB) filed its second-quarter result this time last week. The early response was not positive, with shares down 5.3% to Mex$15.63 in the past week. Things were not great overall, with a surprise (statutory) loss of Mex$0.02 per share on revenues of Mex$206b, even though the analysts had been expecting a profit. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for América Móvil. de

Taking into account the latest results, the consensus forecast from América Móvil. de's 16 analysts is for revenues of Mex$834.8b in 2024. This reflects a credible 2.6% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to surge 128% to Mex$1.20. In the lead-up to this report, the analysts had been modelling revenues of Mex$834.8b and earnings per share (EPS) of Mex$1.32 in 2024. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.

It might be a surprise to learn that the consensus price target was broadly unchanged at Mex$19.36, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values América Móvil. de at Mex$21.00 per share, while the most bearish prices it at Mex$16.80. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. For example, we noticed that América Móvil. de's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 5.3% growth to the end of 2024 on an annualised basis. That is well above its historical decline of 4.5% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 4.8% per year. So it looks like América Móvil. de is expected to grow at about the same rate as the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for América Móvil. de. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for América Móvil. de going out to 2026, and you can see them free on our platform here.

Plus, you should also learn about the 2 warning signs we've spotted with América Móvil. de .

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com