Fomento Economico Mexicano (NYSE:FMX) Posts Quarterly Earnings Results, Beats Estimates By $0.01 EPS

Key Points

• FEMSA beat quarterly estimates: Earnings came in at $0.93 per share versus the $0.92 consensus, while revenue reached $13.20 billion, above estimates of $12.94 billion.
• The company increased its dividend to $1.827 per share, up from $0.67, representing an annualized payout of $7.31 and a 5.5% yield.
• FMX carries a consensus “Moderate Buy” rating from analysts, though its average price target of $119.50 is below the stock’s reported $132.23 opening price.

Fomento Economico Mexicano (NYSE:FMX - Get Free Report) issued its quarterly earnings results on Tuesday. The company reported $0.93 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.92 by $0.01, FiscalAI reports. The business had revenue of $13.20 billion for the quarter, compared to analyst estimates of $12.94 billion. Fomento Economico Mexicano had a return on equity of 7.33% and a net margin of 3.40%.

Fomento Economico Mexicano Stock Performance

FMX stock opened at $132.23 on Tuesday. Fomento Economico Mexicano has a 1-year low of $83.08 and a 1-year high of $134.52. The company has a current ratio of 1.16, a quick ratio of 0.87 and a debt-to-equity ratio of 0.47. The firm has a market cap of $45.69 billion, a PE ratio of 29.58, a P/E/G ratio of 0.69 and a beta of 0.41. The business's 50-day moving average price is $126.01 and its two-hundred day moving average price is $116.42.

Fomento Economico Mexicano Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Monday, July 27th. Shareholders of record on Wednesday, July 15th were issued a dividend of $1.827 per share. This is a boost from Fomento Economico Mexicano's previous quarterly dividend of $0.67. This represents a $7.31 annualized dividend and a yield of 5.5%. The ex-dividend date was Wednesday, July 15th. Fomento Economico Mexicano's dividend payout ratio is presently 54.36%.

Analyst Ratings Changes

FMX has been the topic of a number of research reports. Wall Street Zen downgraded shares of Fomento Economico Mexicano from a "buy" rating to a "hold" rating in a research report on Saturday, July 18th. JPMorgan Chase & Co. lifted their price target on shares of Fomento Economico Mexicano from $117.00 to $126.00 and gave the stock an "overweight" rating in a research report on Friday, June 26th. UBS Group boosted their price target on shares of Fomento Economico Mexicano from $122.00 to $139.00 and gave the stock a "buy" rating in a research note on Thursday, May 28th. Barclays increased their price objective on shares of Fomento Economico Mexicano from $125.00 to $130.00 and gave the company an "equal weight" rating in a report on Tuesday, July 14th. Finally, Zacks Research raised shares of Fomento Economico Mexicano from a "hold" rating to a "strong-buy" rating in a research note on Thursday, April 30th. One analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating and three have issued a Hold rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $119.50.

Hedge Funds Weigh In On Fomento Economico Mexicano

Several institutional investors and hedge funds have recently modified their holdings of FMX. Northwestern Mutual Wealth Management Co. raised its holdings in Fomento Economico Mexicano by 2,006.2% during the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 337 shares of the company's stock worth $35,000 after buying an additional 321 shares during the period. Tower Research Capital LLC TRC increased its position in shares of Fomento Economico Mexicano by 42.5% during the second quarter. Tower Research Capital LLC TRC now owns 439 shares of the company's stock worth $45,000 after acquiring an additional 131 shares in the last quarter. Atlas Capital Advisors Inc. bought a new stake in shares of Fomento Economico Mexicano during the fourth quarter worth $50,000. Brown Brothers Harriman & Co. raised its holdings in shares of Fomento Economico Mexicano by 220.8% during the third quarter. Brown Brothers Harriman & Co. now owns 725 shares of the company's stock worth $72,000 after acquiring an additional 499 shares during the period. Finally, UMB Bank n.a. raised its holdings in shares of Fomento Economico Mexicano by 15.1% during the fourth quarter. UMB Bank n.a. now owns 733 shares of the company's stock worth $74,000 after acquiring an additional 96 shares during the period. 61.00% of the stock is currently owned by institutional investors and hedge funds.

Fomento Economico Mexicano Company Profile

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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