Millicom (TIGO) Is Up 9.6% After Q3 Results Beat With Acquisitions Boosting Earnings

• Millicom International Cellular reported third-quarter 2025 results showing net income of US$195 million on sales of US$1.42 billion, with strong improvements in earnings per share compared to the same period last year.
• Operating performance benefited from recent acquisitions in Uruguay and Ecuador, and financial results exceeded expectations for both the quarter and year-to-date periods.
• We'll examine how Millicom's sharply higher profitability and recent acquisitions could reshape its investment outlook amid evolving regional conditions.

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Millicom International Cellular Investment Narrative Recap

To be a shareholder in Millicom International Cellular, you must believe in its ability to translate ongoing M&A activity, expanding postpaid mobile markets, and high operational efficiencies into sustained earnings and cash flow gains, despite competitive pressure and exposure to Latin American currencies. The company's latest results show a sharp rise in profitability alongside recent acquisitions in Uruguay and Ecuador, which may reinforce the current investment case. The headline risk for Millicom remains potential revenue pressures from rising competition and high capital expenditure requirements, while the key short-term catalyst continues to be margin expansion from integrating new assets; this quarter's news does not materially shift these dynamics.

Among recent announcements, the special and regular dividend distributions approved in June and May are particularly relevant, highlighting management's commitment to returning capital to shareholders in a period of rising net income and strong cash flow generation. This payout amplifies the importance of continued operational performance, particularly as one-off gains and inorganic growth have become an outsized contributor to recent headline numbers.

In contrast, investors should be aware that while Millicom's profit surge looks appealing, its earnings quality is influenced by unusually large one-off gains...

Read the full narrative on Millicom International Cellular (it's free!)

Millicom International Cellular is projected to generate $5.9 billion in revenue and $628.3 million in earnings by 2028. This outlook assumes annual revenue growth of 1.7% but reflects a decrease in earnings of $326.7 million from current earnings of $955.0 million.

Uncover how Millicom International Cellular's forecasts yield a $51.35 fair value, a 4% downside to its current price.

Exploring Other Perspectives

Eight fair value estimates from the Simply Wall St Community range from US$35 to US$96.70 per share. While consensus points to Millicom's growing earnings, sustained high capital expenditures still pose challenges for future margins and free cash flow.

Explore 8 other fair value estimates on Millicom International Cellular - why the stock might be worth 35% less than the current price!

Build Your Own Millicom International Cellular Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Millicom International Cellular research is our analysis highlighting 3 key rewards and 4 important warning signs that could impact your investment decision.
• Our free Millicom International Cellular research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Millicom International Cellular's overall financial health at a glance.

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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.

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