Earnings Miss: América Móvil, S.A.B. de C.V. Missed EPS By 45% And Analysts Are Revising Their Forecasts

It's been a good week for América Móvil, S.A.B. de C.V. (BMV:AMXB) shareholders, because the company has just released its latest third-quarter results, and the shares gained 9.1% to Mex$17.05. Revenue of Mex$223b surpassed estimates by 2.8%, although statutory earnings per share missed badly, coming in 45% below expectations at Mex$0.10 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for América Móvil. de

Taking into account the latest results, the current consensus from América Móvil. de's 14 analysts is for revenues of Mex$901.2b in 2025. This would reflect a solid 8.2% increase on its revenue over the past 12 months. Per-share earnings are expected to jump 179% to Mex$1.68. In the lead-up to this report, the analysts had been modelling revenues of Mex$890.3b and earnings per share (EPS) of Mex$1.56 in 2025. So the consensus seems to have become somewhat more optimistic on América Móvil. de's earnings potential following these results.

The consensus price target was unchanged at Mex$19.38, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values América Móvil. de at Mex$21.00 per share, while the most bearish prices it at Mex$17.00. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting América Móvil. de is an easy business to forecast or the the analysts are all using similar assumptions.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. For example, we noticed that América Móvil. de's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 6.5% growth to the end of 2025 on an annualised basis. That is well above its historical decline of 3.8% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 4.8% per year. So it looks like América Móvil. de is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around América Móvil. de's earnings potential next year. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for América Móvil. de going out to 2026, and you can see them free on our platform here..

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 3 warning signs with América Móvil. de , and understanding these should be part of your investment process.

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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.