Fomento Economico Mexicano (NYSE:FMX) Issues Earnings Results, Beats Estimates By $1.62 EPS

Key Points

• Earnings beat: FEMSA reported Q earnings of $2.43 EPS versus $0.81 expected (beating by $1.62) and revenue of $11.61 billion, slightly above forecasts.
• Operational update: Management reorganized into five segments to highlight growth markets; OXXO Mexico recovered with 8.3% revenue growth, 6% same‑store sales and ~21% higher operating income, while digital platform Spin reached ~11 million active users and >100 million monthly transactions.
• Market and shareholder actions: Shares jumped to $118.35 intraday after the results, and the company announced a quarterly dividend of $0.6658 ($2.66 annualized, ~2.3% yield) with a payout ratio of about 83.9%.

Fomento Economico Mexicano (NYSE:FMX - Get Free Report) released its quarterly earnings data on Thursday. The company reported $2.43 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.81 by $1.62, FiscalAI reports. The business had revenue of $11.61 billion during the quarter, compared to analysts' expectations of $11.42 billion. Fomento Economico Mexicano had a net margin of 2.29% and a return on equity of 6.11%.

Here are the key takeaways from Fomento Economico Mexicano's conference call:

• We reorganized reporting into five segments (including OXXO Mexico and a new Americas & Mobility segment) to improve disclosure and let investors track high-growth markets like Brazil and Colombia more clearly.
• OXXO Mexico showed a solid recovery with 8.3% revenue growth, 6% same-store-sales, a 140 bps gross‑margin expansion (to 46.2%) and operating income up ~21%, though traffic is improved but still slightly negative.
• The Americas & Mobility segment delivered strong top-line momentum (≈12.9% reported; double‑digit same‑store sales in LatAm ex‑Brazil), and management expects profitability to improve as scale and operating leverage grow despite Brazil’s early consolidation losses.
• The Health division underperformed—margins hit by a product‑mix shift (GLP‑1s) in Chile and ongoing losses in Mexico, while institutional receivables in Colombia are rising and FEMSA will not renew its Sanitas agreement, reducing exposure but highlighting credit risk.
• Spin is gaining traction with ~11 million active users, >100 million monthly transactions and >50% digital tender in Q1, positioning it as an omni‑channel growth engine for retail media, customer data and future financial services.

Fomento Economico Mexicano Price Performance

Fomento Economico Mexicano stock traded up $6.34 during mid-day trading on Thursday, hitting $118.35. 966,263 shares of the company traded hands, compared to its average volume of 423,768. Fomento Economico Mexicano has a one year low of $83.08 and a one year high of $119.21. The stock has a market cap of $40.89 billion, a price-to-earnings ratio of 41.53, a price-to-earnings-growth ratio of 0.78 and a beta of 0.40. The company has a debt-to-equity ratio of 0.39, a quick ratio of 1.02 and a current ratio of 1.35. The stock has a fifty day moving average price of $111.47 and a 200-day moving average price of $104.53.

Fomento Economico Mexicano Cuts Dividend

The business also recently announced a quarterly dividend, which will be paid on Monday, May 4th. Shareholders of record on Wednesday, April 22nd will be given a dividend of $0.6658 per share. The ex-dividend date is Wednesday, April 22nd. This represents a $2.66 annualized dividend and a yield of 2.3%. Fomento Economico Mexicano's payout ratio is presently 83.86%.

Insider Transactions at Fomento Economico Mexicano

In other Fomento Economico Mexicano news, Director Garza Alfonso Garza sold 52,311 shares of Fomento Economico Mexicano stock in a transaction that occurred on Friday, March 27th. The shares were sold at an average price of $11.19, for a total transaction of $585,360.09. Following the completion of the sale, the director directly owned 1,128,453 shares in the company, valued at $12,627,389.07. The trade was a 4.43% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Insiders have sold 261,575 shares of company stock worth $2,795,188 in the last three months. Insiders own 5.68% of the company's stock.

Institutional Investors Weigh In On Fomento Economico Mexicano

A number of hedge funds have recently made changes to their positions in the business. AQR Capital Management LLC raised its holdings in Fomento Economico Mexicano by 19.0% during the 1st quarter. AQR Capital Management LLC now owns 6,072 shares of the company's stock valued at $593,000 after buying an additional 969 shares during the last quarter. Northwestern Mutual Wealth Management Co. increased its position in Fomento Economico Mexicano by 2,006.3% during the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 337 shares of the company's stock valued at $35,000 after purchasing an additional 321 shares during the period. New York State Common Retirement Fund purchased a new position in Fomento Economico Mexicano during the 2nd quarter valued at $429,000. EverSource Wealth Advisors LLC grew its position in shares of Fomento Economico Mexicano by 61.0% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,156 shares of the company's stock worth $119,000 after buying an additional 438 shares during the period. Finally, Jump Financial LLC purchased a new stake in shares of Fomento Economico Mexicano in the 2nd quarter worth about $504,000. 61.00% of the stock is currently owned by institutional investors.

Wall Street Analyst Weigh In

FMX has been the subject of several recent research reports. JPMorgan Chase & Co. upped their price target on shares of Fomento Economico Mexicano from $98.00 to $117.00 and gave the company a "neutral" rating in a research report on Monday, April 20th. Barclays increased their target price on shares of Fomento Economico Mexicano from $116.00 to $118.00 and gave the stock an "equal weight" rating in a research note on Tuesday, March 3rd. Wall Street Zen raised shares of Fomento Economico Mexicano from a "hold" rating to a "buy" rating in a research note on Saturday, April 25th. UBS Group raised their price objective on shares of Fomento Economico Mexicano from $109.00 to $122.00 and gave the company a "buy" rating in a research note on Friday, March 20th. Finally, Weiss Ratings reaffirmed a "hold (c-)" rating on shares of Fomento Economico Mexicano in a research note on Tuesday, April 21st. Three investment analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. According to data from MarketBeat.com, Fomento Economico Mexicano presently has a consensus rating of "Hold" and a consensus target price of $113.17.

About Fomento Economico Mexicano

Fomento Económico Mexicano, SAB. de C.V. (FEMSA) is a Mexican multinational company active primarily in the retail and beverage sectors. Headquartered in Monterrey, Mexico, FEMSA's operations span convenience store retailing, beverage bottling and distribution, and related logistics and consumer services. The company's business model combines high-frequency retail outlets with large-scale beverage production and a regional supply chain network.

FEMSA Comercio, the company's retail arm, operates a large chain of convenience stores under the OXXO brand and has expanded its retail footprint with complementary formats and services.

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