Why Did América Móvil Plunge 11.77% Despite 14.1% Revenue Surge?
1min read On May 1, 2025, America Mobile's stock experienced a significant drop of 11.77% in pre-market trading, reflecting investor concerns and market sentiment.
América Móvil reported a strong financial performance for the first quarter of 2025, with revenue increasing by 14.1% year-on-year to 232 billion pesos. This substantial growth was driven by an increase in operating profit and a decrease in financing costs, resulting in a 39% jump in net profit to 18.70 billion pesos.
Despite the positive financial results, América Móvil's earnings call highlighted challenges such as a slowdown in economies and potential regulatory changes. The company's capital expenditure for 2025 was forecasted to be $6.7 billion, down from $7.1 billion in 2024, due to the economic slowdown. Additionally, the company is monitoring a controversial telecommunications bill proposed by President Claudia Sheinbaum, which could impact the sector's dynamics.
The company's earnings and revenue surprises of -6.25% and 0.68%, respectively, for the quarter ended March 2025, indicate that while América Móvil is experiencing growth, it is not meeting all market expectations. The company's consolidated revenue of P$232.0bn and EBITDA of P$91.1bn show a 14.1% and 13.0% year-on-year increase, respectively, but these figures fell slightly short of some analyst forecasts.
