Fomento Economico (NYSE:FMX) Stock

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. Common Stock

Fomento Economico Mexicano SAB de CV

FOMENTO ECONOMIC MEX UTS by Fomento Economico Mexicano SAB

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Shares of alcohol stocks are trading lower as investors assess U.S. tariff risks which may negatively impact the industry.

Goldman Sachs analyst Thiago Bortoluci maintains Fomento Economico (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FMX#NYSE">FMX</a>) with a Buy and lowers the price target from $109 to $97.8.

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Analyst Ratings

Goldman Sachs Maintains Buy on Fomento Economico, Lowers Price Target to $97.8

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<li>Fomento Economico Mexicano S.A.B. de C.V. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FMX#NYSE">FMX</a>) stock lost 7.47% last week after U.S. Surgeon General Murthy issued an advisory warning alcohol consumption could raise cancer risk.</li>
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Shares of alcohol stocks are trading lower after US Surgeon General Murthy issued an advisory warning alcohol consumption could raise cancer risk.

General

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

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.

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

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.

Asset Sales

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

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.

Earnings

Earnings Beats

Earnings Misses

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

Fomento Economico (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.
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).
<h3>Earnings History Snapshot</h3>
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:

<table>
<thead>
<tr>
<th>Quarter</th>
<th>Q2 2024</th>
<th>Q1 2024</th>
<th>Q4 2023</th>
<th>Q3 2023</th>
</tr>
</thead>
<tbody>
<tr>
<td>EPS Estimate</td>
<td>1.21</td>
<td>1</td>
<td>1.61</td>
<td>1.4</td>
</tr>
<tr>
<td>EPS Actual</td>
<td>1.93</td>
<td>0.49</td>
<td>1.46</td>
<td>1.5</td>
</tr>
<tr>
<td>Price Change %</td>
<td>-3.0%</td>
<td>3.0%</td>
<td>-11.0%</td>
<td>2.0%</td>
</tr>
</tbody>
</table>

<img src="https://www.benzinga.com/files/images/story/2024/1729864847_0.png" alt="eps graph" />
<h3>Analyst Views on Fomento Economico</h3>
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.
<h3>Analyzing Analyst Ratings Among Peers</h3>
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.
<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>
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.

<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>

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.
<h3>Unveiling the Story Behind Fomento Economico</h3>
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.
<h3>Breaking Down Fomento Economico's Financial Performance</h3>
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.
<a href="https://www.benzinga.com/quote/FMX/earnings">To track all earnings releases for Fomento Economico visit their earnings calendar on our site.</a>
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Fomento Economico Earnings Preview

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.

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

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. &nbsp;
Total consideration for this transaction will be of approximately $4,060 million Mexican pesos, on a cash-free, debt-free basis.
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.

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.

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.

Downgrades

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

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

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.

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

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.

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

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.

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

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.

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.

Press Releases

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

FEMSA completes divestiture of its plastics solutions operations to AMMI, affiliate of Milenio Capital

FEMSA Schedules Conference Call to Discuss Fourth Quarter and Full Year 2024 Financial Results

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