For Immediate Release
Chicago, IL – May 3, 2010 – Zacks.com Analyst Blog features: America Movil (AMX), Wal-Mart (WMT), MetroPCS (PCS), Leap Wireless (LEAP) and Sprint (S).
Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513
Here are highlights from Friday’s Analyst Blog:
America Movil Trails Estimates
Latin America’s largest wireless carrier America Movil (AMX) reported results for first-quarter 2010 with earnings per ADS of 82 cents, missing the Zacks Consensus Estimates of 93 cents. Net profit rose 1.9% year-over-year to 16.9 billion pesos ($1.3 billion), helped by foreign exchange gains. However, higher tax liabilities (up 58% year-over-year) have dented bottom-line growth.
Revenue & EBITDA
America Movil, which is controlled by Mexican billionaire Carlos Slim, continues to register double-digit revenue growth as consolidated revenues for the quarter grew 9.8% year-over-year to 98.7 billion pesos ($7.7 billion). However, revenues came below the Zacks Consensus Estimate of $8 billion.
Revenue growth was fueled by healthy services revenues. Data revenues (21.3% of service revenues) soared on the back of increased smartphone penetration and growth in 3G data services. Consolidated EBITDA for the quarter was 42.3 billion pesos ($3.3 billion), up 12.4% year-over-year.
Subscriber Statistics
America Movil registered 5.5 million new wireless subscribers in the quarter. Brazil continues to lead the growth with 1.2 million net additions followed by Mexico with 1.1 million and U.S. (“Tracfone”) with 1 million additions. The carrier exited the quarter with a wireless customer base of 206.4 million, up 10.6% year-over-year. Economic recovery in Brazil and Mexico boosted strong subscriber accretion in the quarter.
Subscriber growth at Tracfone (up 31%) was driven by the newly launched low-priced prepaid wireless services (“Straight Talk”), which are being sold by America Movil through Wal-Mart (WMT) in the U.S. Tracfone is offering a $45 monthly unlimited calling plan, which is aggressively positioned against the plans offered by the other prominent low-cost carriers, such as MetroPCS (PCS), Leap Wireless (LEAP) and Sprint (S).
Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5515.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Zacks “Profit from the Pros” e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=5517
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it’s your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5518.
Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.
Contact:
Mark Vickery
Web Content Editor
312-265-9380
Visit: www.zacks.com
