Benzinga | Feb 8, 2021 10:18AM EST

Earnings Preview for America Movil

On Tuesday, February 09, America Movil (NYSE:AMX) will release its latest earnings report. Check out Benzinga's preview to understand the implications.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Analysts predict America Movil will report earnings of $0.28 per share on revenue of $12.84 billion. In the same quarter last year, America Movil reported earnings per share of $0.33 on sales of $13.64 billion.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

The analyst consensus estimate would represent a 15.15% decrease in the company's earnings. Revenue would be down 5.87% from the same quarter last year. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020EPS Estimate 0.34 0.32 -0.04 0.30EPS Actual 0.26 0.26 -0.45 0.33Revenue Estimate 11.84 B 10.39 B 11.05 B 13.29 BRevenue Actual 11.79 B 10.77 B 12.61 B 13.64 B

Stock Performance

Shares of America Movil were trading at $13.525 as of February 05. Over the last 52-week period, shares are down 19.69%. Given that these returns are generally negative, long-term shareholders are likely unhappy going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. America Movil is scheduled to hold the call at 10:00:00 ET and can be accessed here.