Fomento Economico Mexicano (NYSE:FMX) Shares Gap Down Following Weak Earnings

Key Points

• Fomento Economico Mexicano shares fell sharply after the company reported an earnings miss with an EPS of $0.42, significantly below the consensus estimate of $1.07.
• The company announced a dividend increase to $1.3625 per share, up from the previous dividend of $0.73, representing a yield of 2%.
• Analysts have mixed ratings on the stock, with some upgrades and downgrades leading to an average rating of "Hold" and a consensus price target of $107.45.

Fomento Economico Mexicano S.A.B. de C.V. (NYSE:FMX - Get Free Report)'s stock price gapped down prior to trading on Monday following a dissappointing earnings announcement. The stock had previously closed at $98.60, but opened at $94.50. Fomento Economico Mexicano shares last traded at $91.77, with a volume of 387,702 shares changing hands.

The company reported $0.42 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.91 by ($0.49). Fomento Economico Mexicano had a net margin of 2.60% and a return on equity of 5.32%. The business had revenue of $11.27 billion during the quarter, compared to analyst estimates of $216.71 billion.

Fomento Economico Mexicano Increases Dividend

The firm also recently declared a -- dividend, which was paid on Monday, July 28th. Investors of record on Thursday, July 17th were given a $1.3625 dividend. This represents a yield of 200.0%. The ex-dividend date of this dividend was Thursday, July 17th. This is an increase from Fomento Economico Mexicano's previous -- dividend of $0.73. Fomento Economico Mexicano's payout ratio is 74.83%.

Analyst Ratings Changes

Several equities analysts have weighed in on the company. Wall Street Zen cut Fomento Economico Mexicano from a "buy" rating to a "hold" rating in a research note on Wednesday, April 30th. Barclays dropped their price objective on Fomento Economico Mexicano from $110.00 to $107.00 and set an "equal weight" rating on the stock in a research note on Thursday. Itau BBA Securities upgraded Fomento Economico Mexicano from a "market perform" rating to an "outperform" rating in a research note on Monday, April 7th. Finally, UBS Group raised their price objective on Fomento Economico Mexicano from $112.00 to $115.00 and gave the company a "neutral" rating in a research note on Thursday, July 10th. Four analysts have rated the stock with a hold rating and two have issued a buy rating to the company's stock. According to MarketBeat, the stock has a consensus rating of "Hold" and a consensus target price of $107.20.

Institutional Investors Weigh In On Fomento Economico Mexicano

Hedge funds have recently made changes to their positions in the business. Farther Finance Advisors LLC raised its stake in Fomento Economico Mexicano by 41.4% in the 2nd quarter. Farther Finance Advisors LLC now owns 369 shares of the company's stock valued at $38,000 after acquiring an additional 108 shares during the period. Stephens Inc. AR raised its stake in Fomento Economico Mexicano by 2.1% in the 1st quarter. Stephens Inc. AR now owns 5,937 shares of the company's stock valued at $579,000 after acquiring an additional 121 shares during the period. Franklin Resources Inc. raised its stake in Fomento Economico Mexicano by 4.2% in the 4th quarter. Franklin Resources Inc. now owns 3,117 shares of the company's stock valued at $266,000 after acquiring an additional 125 shares during the period. Park Avenue Securities LLC raised its stake in Fomento Economico Mexicano by 4.6% in the 2nd quarter. Park Avenue Securities LLC now owns 2,850 shares of the company's stock valued at $293,000 after acquiring an additional 125 shares during the period. Finally, UMB Bank n.a. raised its stake in Fomento Economico Mexicano by 25.3% in the 2nd quarter. UMB Bank n.a. now owns 821 shares of the company's stock valued at $85,000 after acquiring an additional 166 shares during the period. 61.00% of the stock is currently owned by institutional investors.

Fomento Economico Mexicano Stock Up 0.4%

The stock has a 50 day moving average of $102.49 and a 200-day moving average of $97.96. The firm has a market capitalization of $32.30 billion, a P/E ratio of 30.70, a PEG ratio of 4.35 and a beta of 0.65. The company has a debt-to-equity ratio of 0.42, a quick ratio of 1.31 and a current ratio of 1.34.

Fomento Economico Mexicano Company Profile

Fomento Económico Mexicano, SAB. de C.V., through its subsidiaries, operates as a bottler of Coca-Cola trademark beverages. The company produces, markets, and distributes Coca-Cola trademark beverages in Mexico, Guatemala, Nicaragua, Costa Rica, Panama, Colombia, Venezuela, Brazil, Argentina, and Uruguay.