Fomento Economico Mexicano (NYSE:FMX) Releases Earnings Results, Beats Estimates By $0.06 EPS

Key Points

• FEMSA beat quarterly estimates: Fomento Economico Mexicano reported $1.10 in EPS, surpassing consensus by $0.06, while revenue of $13.03 billion also exceeded the $12.84 billion estimate.
• The dividend was reduced: The company paid a quarterly dividend of $1.7804 per share, down from $1.8270 previously, representing an annualized dividend of $7.12 and a 5.7% yield.
• Analyst sentiment remains favorable: The stock has a “Moderate Buy” consensus rating and a $140.50 average price target, compared with a recent trading price of $124.50.

Fomento Economico Mexicano (NYSE:FMX - Get Free Report) posted its quarterly earnings data on Wednesday. The company reported $1.10 EPS for the quarter, topping analysts' consensus estimates of $1.04 by $0.06, Zacks reports. The business had revenue of $13.03 billion for the quarter, compared to analyst estimates of $12.84 billion.

Fomento Economico Mexicano Price Performance

NYSE FMX traded up $0.23 during trading on Wednesday, reaching $124.50. 453,757 shares of the company's stock were exchanged, compared to its average volume of 477,818. The business has a 50 day moving average price of $120.79 and a 200-day moving average price of $117.96. The stock has a market capitalization of $43.02 billion, a P/E ratio of 24.72 and a beta of 0.41. Fomento Economico Mexicano has a fifty-two week low of $90.87 and a fifty-two week high of $141.47.

Fomento Economico Mexicano Cuts Dividend

The firm also recently declared a quarterly dividend, which was paid on Monday, October 26th. Investors of record on Wednesday, October 14th were issued a dividend of $1.7804 per share. The ex-dividend date was Wednesday, October 14th. This is a decrease from Fomento Economico Mexicano's previous quarterly dividend of $1.8270. This represents a $7.12 dividend on an annualized basis and a yield of 5.7%. Fomento Economico Mexicano's dividend payout ratio is 46.20%.

Wall Street Analyst Weigh In

A number of research analysts have weighed in on the company. JPMorgan Chase & Co. upgraded Fomento Economico Mexicano from a "neutral" rating to an "overweight" rating and raised their price target for the company from $126.00 to $151.00 in a research note on Friday, October 16th. Barclays upped their price objective on Fomento Economico Mexicano from $125.00 to $130.00 and gave the stock an "equal weight" rating in a research note on Tuesday, July 14th. Zacks Research downgraded Fomento Economico Mexicano from a "strong-buy" rating to a "hold" rating in a report on Tuesday, August 4th. Weiss Ratings raised shares of Fomento Economico Mexicano from a "hold (c-)" rating to a "hold (c)" rating in a research note on Friday, September 4th. Finally, Bank of America upgraded shares of Fomento Economico Mexicano from a "neutral" rating to a "buy" rating and boosted their target price for the stock from $125.00 to $150.00 in a report on Tuesday, August 4th. Four investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. Based on data from MarketBeat.com, Fomento Economico Mexicano presently has an average rating of "Moderate Buy" and a consensus price target of $140.50.

Insider Activity

In other Fomento Economico Mexicano news, Director Michael David Kahn purchased 2,100 shares of the company's stock in a transaction that occurred on Tuesday, August 11th. The shares were acquired at an average price of $118.13 per share, for a total transaction of $248,073.00. Following the purchase, the director owned 2,100 shares in the company, valued at approximately $248,073. The trade was a ∞ increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which is accessible through this link. 5.68% of the stock is currently owned by insiders.

Fomento Economico Mexicano Company Profile

Fomento Económico Mexicano, SAB. de C.V. (FEMSA) is a Monterrey, Mexico-based multinational company with operations focused on beverage bottling, retail and related consumer services. The company traces its origins to 1890, when it was established as a brewery in Monterrey, and has since developed into one of Latin America's largest consumer-facing businesses.

FEMSA's principal beverage business is Coca-Cola FEMSA, which produces, markets, sells and distributes Coca-Cola trademark beverages and other nonalcoholic drinks.

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