Abstract
America Movil SAB de CV will report quarterly results on April 21, 2026, Post Market; this preview consolidates the latest actuals, current-quarter forecasts, and institutional commentary to frame what matters most for revenue, profitability, and earnings momentum.
Market Forecast
Based on recent guidance and market tracking, the current-quarter outlook points to revenue of 13.23 billion US dollars, up 13.76% year over year, with adjusted EPS expected at 0.43, up 45.93% year over year; EBIT is projected at 2.71 billion US dollars, up 19.63% year over year. Forecast gross margin and net margin were not explicitly guided in the latest dataset, though investors will focus on how mix and operating costs filter through to margins in the near term.
The core service line remains the dominant driver of the top line and cash generation, with its scale likely to support resilient profitability metrics despite seasonal and currency fluctuations. The most promising growth vector is fixed broadband and convergence, supported by announced M&A in Brazil that could expand footprint and revenue density in key markets once integrated.
Last Quarter Review
America Movil SAB de CV delivered revenue of 13.39 billion US dollars, up 13.43% year over year, with a gross profit margin of 61.32%, GAAP net profit attributable to the parent company of approximately 1.05 billion US dollars based on a 7.81% net profit margin, and adjusted EPS of 0.35, up 133.33% year over year.
One notable feature of the quarterly print was that net profit declined 15.71% quarter on quarter even as revenue expanded year over year, pointing investors to below-the-line items and seasonality as key areas to examine when reconciling the margin bridge into the current quarter.
By business mix, service contributed about 82.01% of revenue, or approximately 10.98 billion US dollars last quarter, while equipment, accessories, and computers contributed roughly 2.25 billion US dollars and other activities approximately 0.15 billion US dollars; the company did not disclose segment-level year-over-year growth splits, but total revenue grew 13.43% year over year.
Current Quarter Outlook
Core connectivity and service revenue
Service remains the anchor of quarterly performance, representing roughly four-fifths of the revenue base in the last reported quarter. For the current quarter, the revenue estimate of 13.23 billion US dollars implies double‑digit momentum at 13.76% year-over-year, and EBIT is projected to rise 19.63% year over year to 2.71 billion US dollars, suggesting operating scale and cost discipline can carry through even amid currency and seasonal noise. Adjusted EPS is forecast to be 0.43, up 45.93% year over year, which implies that the earnings conversion on higher revenue and EBIT is expected to improve, aided by operating mix and potentially more benign non-operating items compared with the prior print’s quarter-on-quarter dip in net profit.
Within service, the key determinants for this quarter’s trajectory are subscriber net additions, average revenue per user, and churn, all of which shape the revenue run-rate and the stability of gross profit. The prior quarter’s 61.32% gross margin offers a high base, so maintaining or modestly expanding that level will require stable mix and efficient network costs. Given that net profit margin printed at 7.81% last quarter, investors will be watching for evidence that the expected EBIT growth translates into improved net margin, and that the quarter-on-quarter compression observed previously does not persist into this period.
The last quarter also slightly topped revenue expectations while missing on EPS, which puts a spotlight on expense phasing, foreign exchange, and financing lines as the swing factors that could determine whether EPS meets or exceeds the current 0.43 estimate. The setup, therefore, emphasizes quality of revenue and the drop-through to EBIT and EPS, rather than sheer growth alone. If service growth aligns with the double-digit revenue estimate and the cost base remains contained, that would support the projected EPS acceleration and alleviate concerns raised by the prior quarter’s quarter-on-quarter dip in net income.
Fixed broadband and convergence expansion
America Movil SAB de CV has signaled intent to strengthen its fixed broadband footprint in Brazil through an agreement for its Claro unit to acquire approximately 73% of Desktop for 4.00 billion Brazilian reais, alongside a tender offer to minority holders at a price at least equal to the acquisition price. This transaction, announced on March 23, 2026, points toward an incremental revenue and network-density opportunity in a market where broadband scale can enhance customer lifetime value and bundling potential over time. While the deal awaits the usual regulatory and closing processes, it represents a clear strategic lever that can recalibrate the growth mix toward a higher share of fixed services in a key country exposure.
In the near term, investors will parse any commentary around integration timelines, planned capex, and the path to cost and revenue synergies. On the cost side, network overlap, procurement, and operations integration can provide scale efficiencies, while cross-selling into the existing base can lift the revenue per household and reduce churn through multi‑product bundles. On the revenue side, incremental penetration in under‑served or newly addressable neighborhoods can add to gross adds and support steady net adds even if macro conditions fluctuate.
For the quarter at hand, the Desktop deal’s financial impact is primarily anticipatory; it is unlikely to be a major P&L driver before closing and integration. However, guidance around broadband net adds, convergence uptake, and any indicative synergy targets could influence how investors handicap the medium‑term earnings power. Given last quarter’s revenue composition—about 10.98 billion US dollars from service—broadband’s long‑term contribution will be judged on the sustainability of ARPU, the efficiency of customer acquisition costs, and churn behavior in converged packages. Positive commentary on these vectors would underpin confidence in both the EBIT and EPS trajectories indicated by this quarter’s forecasts.
Stock price drivers to watch this quarter
Foreign exchange remains a key swing factor for reported results and valuation multiples, especially given the exposure to Latin American currencies such as the Brazilian real and the Mexican peso. Even with volume and pricing support in local terms, translation effects can shape the reported growth rates and margins, affecting how the market interprets the sustainability of the current double‑digit top‑line growth. A relatively stable FX backdrop would improve the odds that the forecasted 13.76% revenue growth and 19.63% EBIT growth are realized on a reported basis; conversely, a less supportive FX tape can compress reported revenue and EPS against otherwise healthy operational performance.
The second driver is cost phasing and the interplay between network opex, customer acquisition costs, and depreciation, which together mediate the bridge from gross margin to EBIT and net margin. The last quarter’s net margin of 7.81%—and the 15.71% quarter-on-quarter decline in net profit—keeps attention fixed on non-operating lines such as interest expense and any FX-related gains or losses that can make EPS more volatile. If this quarter shows that higher EBIT is flowing cleanly into net income without heavy non-operating drag, that would support the implied 45.93% year‑over‑year EPS growth to 0.43.
Capital allocation comes next as an important signaling mechanism. Investors will parse commentary on capex allocation, integration-related outlays tied to the announced Desktop acquisition, and the balance between reinvestment and shareholder returns. Even modest remarks about the cadence of spending, spectrum-related obligations, or the trajectory of financing costs can shift sentiment, particularly after a quarter in which revenue outpaced EPS. Any clarity that reduces uncertainty around these items can help the multiple reflect earnings momentum more fairly.
Analyst Opinions
Across tracked institutional commentary within the period, the majority stance is neutral. A noted example is Scotiabank, where analyst Andres Coello maintained a Hold rating on America Movil SAB de CV with a price target of 19.50 US dollars, signaling a balanced view that aligns with steady but not exuberant expectations for the upcoming print. With revenue forecast to rise 13.76% year over year to 13.23 billion US dollars, EBIT projected at 2.71 billion US dollars, and adjusted EPS expected to climb 45.93% year over year to 0.43, the neutral stance frames this quarter as a validation check on margins, execution, and capital deployment, rather than a call on outsized upside.
In this neutral framework, the path to a more constructive view would hinge on clean drop‑through from double‑digit top-line growth to net income, stabilizing non‑operating effects, and better visibility into the timing and economics of the Brazil broadband acquisition. The previous quarter’s dynamics—revenue growing 13.43% year over year to 13.39 billion US dollars, a 61.32% gross margin, and a 7.81% net margin, but with net profit down 15.71% quarter on quarter and EPS at 0.35—explain why some analysts prefer to see confirmation that EPS momentum matches revenue growth. Neutral positioning also reflects caution around FX, which can mask or amplify underlying progress in local-currency operations.
At the same time, the consensus-level forecasts for this quarter send a constructive signal about operating momentum: EBIT is projected to grow faster than revenue year over year, and the implied earnings leverage would bring adjusted EPS to 0.43. From a neutral lens, this means investors may accept the run-rate if the company demonstrates that cost and capital intensity remain well‑controlled and that the margin bridge is credible. If commentary around Brazil fixed broadband—particularly the Desktop acquisition—provides tangible milestones and supports confidence in convergence monetization, that could gradually recalibrate expectations on medium‑term profitability.
Under a neutral consensus, valuation sensitivity is tied to execution proof points rather than top-line surprises. A small beat on revenue without clarity on expenses or FX could still leave EPS near the 0.43 mark, thus reinforcing the Hold perspective. However, if management can translate the revenue guide into a firmer operating margin story—backed by consistent ARPU trends, manageable churn, and disciplined capex—analysts may begin to reconsider the balance of risks and rewards through the rest of the year.
Finally, neutral views often give more weight to visibility than to headline growth. With the Desktop deal announcement on March 23, 2026, investors will look for signals on integration pacing and expected synergy capture as those elements will shape the earnings base entering subsequent quarters. The degree to which management de‑risks these factors in upcoming commentary could itself be the catalyst for shifting a neutral stance toward a more positive one later in the year, provided the current quarter meets or slightly exceeds the revenue, EBIT, and EPS benchmarks set out here.Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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