Fomento Economico Mexicano, S.A.B. de C.V.
), also known as FEMSA, is set to report first-quarter 2014
results on Apr 30. Last quarter, it posted a negative surprise of
47.8%. Let us see how things are shaping up for this
Factors Affecting the Past Quarter
FEMSA posted lower-than-expected bottom-line results for the
fourth quarter of 2013. The company's net majority income fell
49.5% year over year due to rise in cost of sales and operating
expenses, fall in Heineken's fourth-quarter 2013 net income in
which FEMSA has a 20% participation interest and increased
financing expenses resulting from the recently issued bonds by
Coca-Cola FEMSA and FEMSA Comercio.
Our proven model does not conclusively project FEMSA as likely
to beat earnings this quarter. A stock needs to have both
and a Zacks Rank #1, 2 or 3 to surpass earnings estimates.
However, that is not the case here due to the following
ESP for FEMSA is 0.00% since the Most Accurate Estimate stands at
51 cents per share, which is in line with the Zacks Consensus
Zacks #3 Rank (Hold):
FEMSA's Zacks Rank #3 increases the predictive power of ESP.
However, we need to have a positive ESP to be confident of an
earnings surprise call. We caution against stocks with a Zacks
Rank #4 and 5 (Sell-rated stocks) going into earnings
announcement, especially when the company is undergoing negative
FOMENTO ECO-ADR (FMX): Free Stock Analysis
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