Fomento Economico (NYSE:FMX) Stock, Quote.Headers.trade-ideas

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.

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Fomento Economico Mexicano S.A.B. De C.V.

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Fomento Economico Mexicano S.A.B. de C.V. Common Stock

Fomento Economico Mexicano SAB de CV

FOMENTO ECONOMIC MEX UTS by Fomento Economico Mexicano SAB

AMILOT CAPITAL INC by Amilot Capital Inc.

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General

Shares of US-listed Mexican stocks are trading lower after Donald Trump was elected president of the United States.

<p>Barclays  analyst Benjamin Theurer   maintains Fomento Economico (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FMX#NYSE">FMX</a>) with a Overweight and lowers the price target from $125 to $118.</p>


Price Target

Analyst Ratings

Barclays Maintains Overweight on Fomento Economico, Lowers Price Target to $118

<p>This transaction represents an additional step in the continued execution of the FEMSA Forward plan that was communicated in February of 2023. The transaction is expected to close in the following months.</p>


Asset Sales

FEMSA Reaches Definitive Agreement With AMMI To Divest Its Plastics Solutions Operations For Total Amount Of $3.165B Pesos

<p>Fomento Economico (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FMX#NYSE">FMX</a>) reported quarterly earnings of $0.84 per share which missed the analyst consensus estimate of $1.06 by 20.75 percent.  The company reported quarterly sales of $10.402 billion which beat the analyst consensus estimate of $10.143 billion by 2.56 percent.  This is a 5.64 percent decrease over sales of $11.024 billion the same period last year.</p>


Earnings

Earnings Beats

Earnings Misses

Fomento Economico Q3 2024 GAAP EPS $0.84 Misses $1.06 Estimate, Sales $10.402B Beat $10.143B Estimate

<p><strong>Fomento Economico</strong> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FMX#NYSE">FMX</a>) is set to give its latest quarterly earnings report on Monday, 2024-10-28. Here's what investors need to know before the announcement.</p>
<p>Analysts estimate that Fomento Economico will report an <strong>earnings per share</strong> (EPS) of $1.05. </p>
<p>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.</p>
<p>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).</p>
<h3>Earnings History Snapshot</h3>
<p>Last quarter the company beat EPS by $0.72, which was followed by a 2.54% drop in the share price the next day.</p>
<p>Here's a look at Fomento Economico's past performance and the resulting price change:</p>
<p>
<table>
<thead>
<tr>
<th><strong>Quarter</strong></th>
<th><strong>Q2 2024</strong></th>
<th><strong>Q1 2024</strong></th>
<th><strong>Q4 2023</strong></th>
<th><strong>Q3 2023</strong></th>
</tr>
</thead>
<tbody>
<tr>
<td><strong>EPS Estimate</strong></td>
<td>1.21</td>
<td>1</td>
<td>1.61</td>
<td>1.4</td>
</tr>
<tr>
<td><strong>EPS Actual</strong></td>
<td>1.93</td>
<td>0.49</td>
<td>1.46</td>
<td>1.5</td>
</tr>
<tr>
<td><strong>Price Change %</strong></td>
<td>-3.0%</td>
<td>3.0%</td>
<td>-11.0%</td>
<td>2.0%</td>
</tr>
</tbody>
</table>
</p>
<p><img src="https://www.benzinga.com/files/images/story/2024/1729864847_0.png" alt="eps graph" /></p>
<h3>Analyst Views on Fomento Economico</h3>
<p>For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Fomento Economico.</p>
<p>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.</p>
<h3>Analyzing Analyst Ratings Among Peers</h3>
<p>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.</p>
<ul>
<li>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.</li>
<li>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.</li>
<li>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.</li>
</ul>
<h3>Analysis Summary for Peers</h3>
<p>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.</p>
<p>
<table>
<thead>
<tr>
<th>Company</th>
<th>Consensus</th>
<th>Revenue Growth</th>
<th>Gross Profit</th>
<th>Return on Equity</th>
</tr>
</thead>
<tbody>
<tr>
<td>PepsiCo</td>
<td>Neutral</td>
<td>-0.57%</td>
<td>$12.92B</td>
<td>15.06%</td>
</tr>
<tr>
<td>Coca-Cola</td>
<td>Outperform</td>
<td>-4.12%</td>
<td>$7.55B</td>
<td>10.88%</td>
</tr>
<tr>
<td>Monster Beverage</td>
<td>Neutral</td>
<td>2.46%</td>
<td>$1.02B</td>
<td>5.89%</td>
</tr>
<tr>
<td>Keurig Dr Pepper</td>
<td>Outperform</td>
<td>3.51%</td>
<td>$2.17B</td>
<td>2.09%</td>
</tr>
</tbody>
</table>
</p>
<p>Key Takeaway:</p>
<p>Fomento Economico ranks at the top for Gross Profit and Return on Equity among its peers. It is in the middle for Revenue Growth.</p>
<h3>Unveiling the Story Behind Fomento Economico</h3>
<p>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.</p>
<h3>Breaking Down Fomento Economico's Financial Performance</h3>
<p><strong>Market Capitalization Analysis:</strong> The company's market capitalization surpasses industry averages, showcasing a dominant size relative to peers and suggesting a strong market position.</p>
<p><strong>Positive Revenue Trend:</strong> Examining Fomento Economico's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of <strong>12.18%</strong> 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.</p>
<p><strong>Net Margin:</strong> Fomento Economico's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of <strong>6.34%,</strong> the company may encounter challenges in effective cost control.</p>
<p><strong>Return on Equity (ROE):</strong> Fomento Economico's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of <strong>4.47%,</strong> the company may encounter challenges in delivering satisfactory returns for shareholders.</p>
<p><strong>Return on Assets (ROA):</strong> Fomento Economico's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of <strong>1.56%,</strong> the company may face hurdles in achieving optimal financial returns.</p>
<p><strong>Debt Management:</strong> Fomento Economico's debt-to-equity ratio stands notably higher than the industry average, reaching <strong>0.82</strong>. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.</p>
<p><a href="https://www.benzinga.com/quote/FMX/earnings"><strong>To track all earnings releases for Fomento Economico visit their earnings calendar on our site.</strong></a></p>
<p><em>This article was generated by Benzinga's automated content engine and reviewed by an editor.</em></p>


Fomento Economico Earnings Preview

<p>Barclays  analyst Benjamin Theurer   maintains Fomento Economico (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FMX#NYSE">FMX</a>) with a Overweight and lowers the price target from $145 to $125.</p>


Barclays Maintains Overweight on Fomento Economico, Lowers Price Target to $125

<p>Fomento Económico Mexicano, S.A.B. de C.V. ("FEMSA" or the "Company") (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FMX#NYSE">FMX</a>, BMV:<a class="ticker" href="https://www.benzinga.com/stock/FEMSAUBD#BMV">FEMSAUBD</a>, FEMSAUB)))) announced it has reached a definitive agreement with Grupo Traxión, S.A.B. de C.V (BMV:<a class="ticker" href="https://www.benzinga.com/stock/TRAXIONA#BMV">TRAXIONA</a>), a leading transportation and logistics company based in Mexico, to divest certain of FEMSA's logistics operations doing business as Solistica. The transaction includes FEMSA's transportation management operations in Mexico, as well as its contract logistics operations in Mexico, Colombia and Brazil. The transaction does not include FEMSA's LTL (less-than-truckload) operations in Brazil.<br /><br />&nbsp;</p>
<p>Total consideration for this transaction will be of approximately $4,060 million Mexican pesos, on a cash-free, debt-free basis.</p>
<p>This transaction represents an additional step in the continued execution of the FEMSA Forward plan that was communicated in February of 2023. The transaction is subject to regulatory approvals and other customary conditions and is expected to close in the following months.</p>


BMV:FEMSAUBD

BMV:TRAXIONA

FEMSA Announces Agreement With TRAXIÓN To Divest Certain Of FEMSA's Logistics Operations; Total Consideration For This Transaction Will Be Of ~4.06 Billion Mexican Pesos, On A Cash-Free, Debt-Free Basis.

<p>JP Morgan  analyst Joseph Giordano   downgrades Fomento Economico (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FMX#NYSE">FMX</a>) from Overweight to Neutral and raises the price target from $104 to $109.</p>


Downgrades

JP Morgan Downgrades Fomento Economico to Neutral, Raises Price Target to $109

WIIM

Fomento Economico Mexicano shares are trading lower. The company reported Q2 financial results.

<p>Fomento Economico (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FMX#NYSE">FMX</a>) reported quarterly earnings of $1.93 per share which beat the analyst consensus estimate of $1.17 by 64.96 percent.  The company reported quarterly sales of $11.539 billion which beat the analyst consensus estimate of $11.115 billion by 3.82 percent.  This is a 2.93 percent increase over sales of $11.210 billion the same period last year.</p>


Fomento Economico Q2 2024 GAAP EPS $1.93 Beats $1.17 Estimate, Sales $11.539B Beat $11.115B Estimate

<p>Fomento Economico (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FMX#NYSE">FMX</a>) reported quarterly sales of $11.54 billion which beat the analyst consensus estimate of $11.12 billion by 3.77 percent.  This is a 2.93 percent increase over sales of $11.21 billion the same period last year.</p>


Fomento Economico Q2 Sales $11.54B Beat $11.12B Estimate

Reported Earlier, Mill Point Capital Acquires FEMSA's Imbera And Torrey, Forming AeriTek Global LLC

<p>Barclays  analyst Benjamin Theurer   maintains Fomento Economico (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FMX#NYSE">FMX</a>) with a Overweight and lowers the price target from $160 to $145.</p>


Barclays Maintains Overweight on Fomento Economico, Lowers Price Target to $145

<p>Fomento Económico Mexicano, S.A.B. de C.V. ("FEMSA" or the "Company") (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FMX#NYSE">FMX</a>, BMV:<a class="ticker" href="https://www.benzinga.com/stock/FEMSAUBD#BMV">FEMSAUBD</a>, FEMSAUB)))) announces today that it has entered into a new derivative instrument in the form of an accelerated share repurchase transaction ("ASR") to repurchase the Company's American Depositary Shares ("ADSs")1. Under the terms of this new ASR, FEMSA has agreed to repurchase up to USD $600 million of its ADSs. The total number of ADSs ultimately repurchased under this ASR will be based on the daily volume-weighted average price of the Company's ADSs during the term of the ASR and subject to certain limitations. The final settlement of the ASR is expected to be completed, at the latest, in the fourth quarter of 2024.</p>


Buybacks

FEMSA Announces New $600M ADS Repurchase Program

Fomento Economico Mexicano shares are trading higher. US-listed Mexico stocks may be volatile following Mexico's presidential election.

Fomento Economico shares are trading higher following a Q1 EPS beat.

<p>Fomento Economico (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FMX#NYSE">FMX</a>) reported quarterly earnings of $1.40 per share which beat the analyst consensus estimate of $1.00 by 40 percent. This is a 40 percent increase over earnings of $1.00 per share from the same period last year.  The company reported quarterly sales of $10.50 billion which missed the analyst consensus estimate of $10.71 billion by 1.98 percent.  This is a 8.88 percent increase over sales of $9.64 billion the same period last year.</p>


Fomento Economico Q1 EPS $1.40 Beats $1.00 Estimate, Sales $10.50B Miss $10.71B Estimate

<p><strong>Fomento Economico's</strong> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FMX#NYSE">FMX</a>) short percent of float has risen 8.93% since its last report. The company recently reported that it has <strong>1.31 million shares sold short</strong>, which is 0.61% of all regular shares that are available for trading. Based on its trading volume, <strong>it would take traders 2.64 days to cover their short positions on average.</strong></p>
<h3>Why Short Interest Matters</h3>
<p>Short interest is the number of shares that have been sold short but have not yet been covered or closed out. <a href="https://www.benzinga.com/money/how-to-short-a-stock/">Short selling</a> is when a trader sells shares of a company they do not own, with the hope that the price will fall. Traders make money from short selling if the price of the stock falls and they lose if it rises.</p>
<p>Short interest is important to track because it can act as an indicator of market sentiment towards a particular stock. An increase in short interest can signal that investors have become more bearish, while a decrease in short interest can signal they have become more bullish.</p>
<p><strong>See Also:</strong> <a href="https://www.benzinga.com/short-interest"><strong>List of the most shorted stocks</strong></a></p>
<h3>Fomento Economico Short Interest Graph (3 Months)</h3>
<p><img src="https://www.benzinga.com/files/images/story/2024/1710349222_0.png" alt="short_fig" /></p>
<p>As you can see from the chart above the percentage of shares that are sold short for Fomento Economico has grown since its last report. This does not mean that the stock is going to fall in the near-term but traders should be aware that more shares are being shorted.</p>
<h3>Comparing Fomento Economico's Short Interest Against Its Peers</h3>
<p>Peer comparison is a popular technique amongst analysts and investors for gauging how well a company is performing. A company's peer is another company that has similar characteristics to it, such as industry, size, age, and financial structure. You can find a company's peer group by reading its 10-K, proxy filing, or by doing your own similarity analysis.</p>
<p>According to <a href="https://pro.benzinga.com/">Benzinga Pro</a>, Fomento Economico's peer group average for short interest as a percentage of float is 7.65%, which means the company has <strong>less</strong> short interest than most of its peers.</p>
<p>Did you know that increasing short interest can actually be <strong>bullish</strong> for a stock? <a href="https://www.benzinga.com/money/how-to-make-money-on-a-short-squeeze/"><strong>This post by Benzinga Money explains how you can profit from it.</strong></a></p>
<p><em>This article was generated by Benzinga's automated content engine and was reviewed by an editor.</em></p>


Short Sellers

Looking Into Fomento Economico's Recent Short Interest

Fomento Economico Mexicano shares are trading lower after the company reported worse-than-expected Q4 results.

<p><strong>Fomento Economico</strong> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FMX#NYSE">FMX</a>) reported its Q4 earnings results on Friday, February 23, 2024 at 08:33 AM.</p>
<p>Here's what investors need to know about the announcement.</p>
<h3>Earnings</h3>
<p>Fomento Economico missed estimated earnings by 9.32%, reporting an EPS of $1.46 versus an estimate of $1.61.</p>
<p>Revenue was up $1.33 billion from the same period last year.</p>
<h3>Past Earnings Performance</h3>
<p>Last quarter the company beat on EPS by $0.1 which was followed by a 1.8% increase in the share price the next day.</p>
<p>Here's a look at Fomento Economico's past performance:</p>
<p>
<table>
<thead>
<tr>
<th><strong>Quarter</strong></th>
<th><strong>Q3 2023</strong></th>
<th><strong>Q2 2023</strong></th>
<th><strong>Q1 2023</strong></th>
<th><strong>Q4 2022</strong></th>
</tr>
</thead>
<tbody>
<tr>
<td><strong>EPS Estimate</strong></td>
<td>1.4</td>
<td>0.92</td>
<td>1.35</td>
<td>1.27</td>
</tr>
<tr>
<td><strong>EPS Actual</strong></td>
<td>1.5</td>
<td>1.33</td>
<td>1</td>
<td>1.73</td>
</tr>
<tr>
<td><strong>Revenue Estimate</strong></td>
<td>11.67B</td>
<td>11.58B</td>
<td>9.44B</td>
<td>9.08B</td>
</tr>
<tr>
<td><strong>Revenue Actual</strong></td>
<td>11.02B</td>
<td>11.21B</td>
<td>9.64B</td>
<td>9.49B</td>
</tr>
</tbody>
</table>
</p>
<p>To track all earnings releases for Fomento Economico <a href="https://www.benzinga.com/quote/FMX/earnings">visit their earnings calendar here.</a> </p>
<p>This article was generated by Benzinga's automated content engine and reviewed by an editor.</p>


Recap: Fomento Economico Q4 Earnings

Jose Antonio Fernandez Carbajal, CEO, commented: "During the third quarter, most of our business units delivered encouraging results, with revenue ...

Femsa reports Q3 revenue up 8.3% year-over-year

Fomento Economico Mexicano reports Q3 results

Fomento Economico Mexicano (FMX) has released an update. Fomento Económico Mexicano (FEMSA) reported an 8.3% increase in total consolidated revenue...

FEMSA Reports Strong Growth in Q3 2024 Results

Fomento Económico Mexicano, S.A.B. de C.V. (FMX) Q3 2024 Earnings Call Transcript

Fomento Economico Mexicano (FMX) has released an update. Fomento Económico Mexicano (FEMSA) has announced an agreement to sell its plastics solutio...

FEMSA to Divest Plastics Unit to AMMI

FEMSA announces agreement to divest its plastics solutions operations

Companies in the Utilities sector have received a lot of coverage today as analysts weigh in on Fomento Economico Mexicano (FMX – Research Report) ...

Analysts Have Conflicting Sentiments on These Utilities Companies: Fomento Economico Mexicano (FMX) and Northwestern (NWE)

Fomento Economico Mexicano announced the successful closing of its previously disclosed divestiture on July 17, 2024, with Mill Point Capital LLC, ...

Femsa completes divestiture of Imbera and Torrey to Mill Point Capital

FEMSA Looks Like A Terrific Contrarian Pick In Times Of Fear For Mexico

Allspring Emerging Markets Equity Fund Q3 2024 Commentary

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Press Releases

FEMSA Announces Second Quarter 2024 Results

Definitive Agreement Signed for FEMSA's Acquisition of Retail Assets from Delek US

FEMSA to enter the Convenience Store Industry in the United States

Delek US Holdings, Inc. Announces Closing of Sale of Retail Assets to FEMSA

Financing

FEMSA announces agreement with TRAXIÓN to divest certain of FEMSA's logistics operations

FEMSA Schedules Conference Call to Discuss Third Quarter Financial Results

FEMSA Announces Third Quarter 2024 Results

FEMSA announces agreement with AMMI, affiliate of Milenio Capital, to divest FEMSA's plastics solutions operations

FEMSA completes divestiture of its refrigeration and foodservice equipment operations to Mill Point Capital

Mill Point Capital Completes Acquisition of AeriTek Global LLC

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