What drives LILA's earnings surprises?

Liberty Latin America's (LILA) recent earnings report revealed an EPS surprise of -0.02 and a revenue surprise of -10 million, raising questions about the factors contributing to these surprises.

1. **Hurricane Impact and Foreign Exchange**: The company's revenue was adversely affected by Hurricane Beryl and changes in foreign exchange rates. These external factors contributed significantly to the revenue shortfall.
2. **Strategic Initiatives and Segment Performance**: While Liberty Latin America reported a successful $1 billion debt refinancing and acquisitions in Puerto Rico and the US Virgin Islands, these strategic moves may not have fully translated to immediate revenue or earnings improvements. The company's segments, such as Liberty Puerto Rico, faced challenges such as a 24% decline in Adjusted OIBDA due to operational impacts and subscriber churn. The impact of these initiatives on earnings may be unfolding over a longer period, making it challenging to capture in a single quarter's performance.

In summary, Liberty Latin America's earnings surprises are primarily driven by external factors such as Hurricane Beryl and foreign exchange rates, along with the strategic initiatives that may take time to show results in the financial statements.