Fomento Economico Earnings Preview

Fomento Economico FMX is set to give its latest quarterly earnings report on Monday, 2024-10-28. Here's what investors need to know before the announcement.

Analysts estimate that Fomento Economico will report an earnings per share (EPS) of $1.05.

Fomento Economico bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.

New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).

Earnings History Snapshot

Last quarter the company beat EPS by $0.72, which was followed by a 2.54% drop in the share price the next day.

Here's a look at Fomento Economico's past performance and the resulting price change:

Analyst Views on Fomento Economico

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Fomento Economico.

Analysts have provided Fomento Economico with 2 ratings, resulting in a consensus rating of Neutral. The average one-year price target stands at $117.0, suggesting a potential 21.19% upside.

Analyzing Analyst Ratings Among Peers

The analysis below examines the analyst ratings and average 1-year price targets of Coca-Cola, Monster Beverage and Keurig Dr Pepper, three significant industry players, providing valuable insights into their relative performance expectations and market positioning.

• Coca-Cola is maintaining an Outperform status according to analysts, with an average 1-year price target of $77.2, indicating a potential 20.03% downside.
• The prevailing sentiment among analysts is an Neutral trajectory for Monster Beverage, with an average 1-year price target of $53.17, implying a potential 44.92% downside.
• The consensus outlook from analysts is an Outperform trajectory for Keurig Dr Pepper, with an average 1-year price target of $40.67, indicating a potential 57.87% downside.

Analysis Summary for Peers

Within the peer analysis summary, vital metrics for Coca-Cola, Monster Beverage and Keurig Dr Pepper are presented, shedding light on their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

Fomento Economico ranks at the top for Gross Profit and Return on Equity among its peers. It is in the middle for Revenue Growth.

Unveiling the Story Behind Fomento Economico

Mexico-based Femsa is a beverage and retail conglomerate in Central and South America. The holding company owns controlling stakes in bottler Coca-Cola Femsa (47% economic stake, 56% voting rights), in addition to operating 100%-owned retail assets, including convenience stores under the Oxxo banner, drugstores, and gas stations. The firm divested its 15% stake in Heineken and its distribution business in 2023. Coca-Cola Femsa and the Oxxo chain made up 75% of total company revenue and around 90% of profits in 2023.

Breaking Down Fomento Economico's Financial Performance

Market Capitalization Analysis: The company's market capitalization surpasses industry averages, showcasing a dominant size relative to peers and suggesting a strong market position.

Positive Revenue Trend: Examining Fomento Economico's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 12.18% as of 30 June, 2024, showcasing a substantial increase in top-line earnings. When compared to others in the Consumer Staples sector, the company excelled with a growth rate higher than the average among peers.

Net Margin: Fomento Economico's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of 6.34%, the company may encounter challenges in effective cost control.

Return on Equity (ROE): Fomento Economico's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of 4.47%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): Fomento Economico's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of 1.56%, the company may face hurdles in achieving optimal financial returns.

Debt Management: Fomento Economico's debt-to-equity ratio stands notably higher than the industry average, reaching 0.82. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

To track all earnings releases for Fomento Economico visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.