We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Factors Setting the Tone for FEMSA (FMX) in Q4 Earnings
Read MoreHide Full Article
Fomento Economico Mexicano, S.A.B. de C.V. (FMX - Free Report) or FEMSA is slated to report fourth-quarter 2018 results on Feb 27.
The company has a dismal earnings surprise trend, having missed estimates in three of the trailing four quarters. Also, it witnessed average four-quarter negative earnings surprise of 44.5%.
Fomento Economico Mexicano S.A.B. de C.V. Price and EPS Surprise
FEMSA witnesses soft operating margin at the Proximity division on higher operating expenses due to the gradual shift of store teams to employee-based, higher transportation costs, higher electricity tariffs and organic growth of OXXO’s international operations.
Furthermore, FEMSA remains prone to the rising raw material costs that have plagued the beverage industry. Higher tariff on steel and aluminium by the Trump administration leading to an increase in costs for producing cans and packaging is an added concern. Escalating industry-wide freight costs and increase in other input costs, which is impacting the bottling system and some of the company’s finished products, have been resulting in higher product prices. These price increases can be disruptive as consumers may refrain from buying colas and other drinks. Consequently, the company’s top and bottom-lines performances might be hampered in the to-be-reported quarter.
The company had earlier notified about macroeconomic uncertainty that is likely to prevail in many of its markets including Mexico and Brazil going forward.
Nevertheless, FEMSA’s strategic efforts to expand the store base, diversify the business portfolio and focus on the core business activities are encouraging. The company has been taking strategic actions to diversify its product portfolio while expanding in the small-box retail segment, particularly across Latin America. This was evident from its recent entry in Ecuador through the Health Division. Further, the company announced the entry in Peru with the opening of its first OXXO store in the city of Lima.
FEMSA’s vast exposure in various industries through Coca-Cola FEMSA, which operates as the world’s largest franchise bottler for Coca-Cola products, remains an added positive. Apart from these, FEMSA provides logistics, point-of-sale refrigeration solutions and plastics solutions to its business units and third-party clients through its FEMSA Strategic Businesses subsidiary.
Stocks Likely to Deliver Earnings Beat
Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Abercrombie & Fitch Co. (ANF - Free Report) has an Earnings ESP of +2.28% and a Zacks Rank of 2.
Nu Skin Enterprises, Inc. (NUS - Free Report) has an Earnings ESP of +0.34% and a Zacks Rank #2.
This Could Be the Fastest Way to Grow Wealth in 2019
Research indicates one sector is poised to deliver a crop of the best-performing stocks you'll find anywhere in the market. Breaking news in this space frequently creates quick double- and triple-digit profit opportunities.
These companies are changing the world – and owning their stocks could transform your portfolio in 2019 and beyond. Recent trades from this sector have generated +98%, +119% and +164% gains in as little as 1 month.
Image: Bigstock
Factors Setting the Tone for FEMSA (FMX) in Q4 Earnings
Fomento Economico Mexicano, S.A.B. de C.V. (FMX - Free Report) or FEMSA is slated to report fourth-quarter 2018 results on Feb 27.
The company has a dismal earnings surprise trend, having missed estimates in three of the trailing four quarters. Also, it witnessed average four-quarter negative earnings surprise of 44.5%.
Fomento Economico Mexicano S.A.B. de C.V. Price and EPS Surprise
Fomento Economico Mexicano S.A.B. de C.V. price-eps-surprise | Fomento Economico Mexicano S.A.B. de C.V. Quote
Factors Likely to Impact Q4
FEMSA witnesses soft operating margin at the Proximity division on higher operating expenses due to the gradual shift of store teams to employee-based, higher transportation costs, higher electricity tariffs and organic growth of OXXO’s international operations.
Furthermore, FEMSA remains prone to the rising raw material costs that have plagued the beverage industry. Higher tariff on steel and aluminium by the Trump administration leading to an increase in costs for producing cans and packaging is an added concern. Escalating industry-wide freight costs and increase in other input costs, which is impacting the bottling system and some of the company’s finished products, have been resulting in higher product prices. These price increases can be disruptive as consumers may refrain from buying colas and other drinks. Consequently, the company’s top and bottom-lines performances might be hampered in the to-be-reported quarter.
The company had earlier notified about macroeconomic uncertainty that is likely to prevail in many of its markets including Mexico and Brazil going forward.
Nevertheless, FEMSA’s strategic efforts to expand the store base, diversify the business portfolio and focus on the core business activities are encouraging. The company has been taking strategic actions to diversify its product portfolio while expanding in the small-box retail segment, particularly across Latin America. This was evident from its recent entry in Ecuador through the Health Division. Further, the company announced the entry in Peru with the opening of its first OXXO store in the city of Lima.
FEMSA’s vast exposure in various industries through Coca-Cola FEMSA, which operates as the world’s largest franchise bottler for Coca-Cola products, remains an added positive. Apart from these, FEMSA provides logistics, point-of-sale refrigeration solutions and plastics solutions to its business units and third-party clients through its FEMSA Strategic Businesses subsidiary.
Stocks Likely to Deliver Earnings Beat
Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Turning Point Brands, Inc. (TPB - Free Report) has an Earnings ESP of +11.11% and a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Abercrombie & Fitch Co. (ANF - Free Report) has an Earnings ESP of +2.28% and a Zacks Rank of 2.
Nu Skin Enterprises, Inc. (NUS - Free Report) has an Earnings ESP of +0.34% and a Zacks Rank #2.
This Could Be the Fastest Way to Grow Wealth in 2019
Research indicates one sector is poised to deliver a crop of the best-performing stocks you'll find anywhere in the market. Breaking news in this space frequently creates quick double- and triple-digit profit opportunities.
These companies are changing the world – and owning their stocks could transform your portfolio in 2019 and beyond. Recent trades from this sector have generated +98%, +119% and +164% gains in as little as 1 month.
Click here to see these breakthrough stocks now >>