Fomento Economico Mexicano (NYSE:FMX) Posts Quarterly Earnings Results, Beats Estimates By $0.27 EPS

Fomento Economico Mexicano (NYSE:FMX) posted its quarterly earnings data on Thursday. The company reported $0.92 earnings per share for the quarter, beating the consensus estimate of $0.65 by $0.27, Zacks reports. Fomento Economico Mexicano had a net margin of 3.40% and a return on equity of 7.63%. The company had revenue of $11.61 billion during the quarter, compared to analyst estimates of $11.43 billion.

Here are the key takeaways from Fomento Economico Mexicano’s conference call:

• We reorganized reporting into five segments (including OXXO Mexico and a new Americas & Mobility segment) to improve disclosure and let investors track high-growth markets like Brazil and Colombia more clearly.
• OXXO Mexico showed a solid recovery with 8.3% revenue growth, 6% same-store-sales, a 140 bps gross‑margin expansion (to 46.2%) and operating income up ~21%, though traffic is improved but still slightly negative.
• The Americas & Mobility segment delivered strong top-line momentum (≈12.9% reported; double‑digit same‑store sales in LatAm ex‑Brazil), and management expects profitability to improve as scale and operating leverage grow despite Brazil’s early consolidation losses.
• The Health division underperformed—margins hit by a product‑mix shift (GLP‑1s) in Chile and ongoing losses in Mexico, while institutional receivables in Colombia are rising and FEMSA will not renew its Sanitas agreement, reducing exposure but highlighting credit risk.
• Spin is gaining traction with ~11 million active users, >100 million monthly transactions and >50% digital tender in Q1, positioning it as an omni‑channel growth engine for retail media, customer data and future financial services.

Fomento Economico Mexicano Trading Up 1.5%

NYSE FMX traded up $1.76 on Friday, hitting $120.00. 465,963 shares of the stock were exchanged, compared to its average volume of 421,721. Fomento Economico Mexicano has a 52-week low of $83.08 and a 52-week high of $120.65. The company has a debt-to-equity ratio of 0.39, a current ratio of 1.35 and a quick ratio of 1.02. The company has a market capitalization of $41.46 billion, a price-to-earnings ratio of 42.10, a P/E/G ratio of 0.81 and a beta of 0.42. The company’s 50-day moving average price is $111.59 and its two-hundred day moving average price is $104.63.

Fomento Economico Mexicano Cuts Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, May 4th. Shareholders of record on Wednesday, April 22nd will be given a dividend of $0.6658 per share. This represents a $2.66 annualized dividend and a yield of 2.2%. The ex-dividend date is Wednesday, April 22nd. Fomento Economico Mexicano’s payout ratio is presently 83.86%.

Insiders Place Their Bets

In related news, Director Garza Alfonso Garza sold 52,316 shares of the firm’s stock in a transaction that occurred on Wednesday, March 25th. The shares were sold at an average price of $11.07, for a total transaction of $579,138.12. Following the completion of the sale, the director directly owned 1,233,080 shares in the company, valued at approximately $13,650,195.60. This trade represents a 4.07% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. In the last 90 days, insiders have sold 261,575 shares of company stock worth $2,795,188. Insiders own 5.68% of the company’s stock.

Institutional Trading of Fomento Economico Mexicano

Several institutional investors have recently made changes to their positions in the stock. UMB Bank n.a. boosted its holdings in shares of Fomento Economico Mexicano by 15.1% during the fourth quarter. UMB Bank n.a. now owns 733 shares of the company’s stock worth $74,000 after purchasing an additional 96 shares during the period. Tower Research Capital LLC TRC boosted its holdings in shares of Fomento Economico Mexicano by 42.5% during the second quarter. Tower Research Capital LLC TRC now owns 439 shares of the company’s stock worth $45,000 after purchasing an additional 131 shares during the period. Arax Advisory Partners boosted its holdings in shares of Fomento Economico Mexicano by 20.1% during the fourth quarter. Arax Advisory Partners now owns 812 shares of the company’s stock worth $82,000 after purchasing an additional 136 shares during the period. Kestra Advisory Services LLC boosted its holdings in shares of Fomento Economico Mexicano by 5.2% during the fourth quarter. Kestra Advisory Services LLC now owns 3,864 shares of the company’s stock worth $391,000 after purchasing an additional 190 shares during the period. Finally, Smartleaf Asset Management LLC boosted its holdings in shares of Fomento Economico Mexicano by 15.2% during the fourth quarter. Smartleaf Asset Management LLC now owns 1,563 shares of the company’s stock worth $157,000 after purchasing an additional 206 shares during the period. 61.00% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

FMX has been the subject of several research reports. The Goldman Sachs Group raised their price objective on shares of Fomento Economico Mexicano from $113.00 to $128.00 and gave the company a “buy” rating in a research report on Wednesday, February 11th. JPMorgan Chase & Co. raised their target price on shares of Fomento Economico Mexicano from $98.00 to $117.00 and gave the stock a “neutral” rating in a report on Monday, April 20th. Barclays upped their price target on shares of Fomento Economico Mexicano from $116.00 to $118.00 and gave the company an “equal weight” rating in a research report on Tuesday, March 3rd. Wall Street Zen upgraded shares of Fomento Economico Mexicano from a “hold” rating to a “buy” rating in a research report on Saturday, April 25th. Finally, Weiss Ratings reiterated a “hold (c-)” rating on shares of Fomento Economico Mexicano in a research report on Tuesday, April 21st. One investment analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and four have issued a Hold rating to the stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus target price of $113.17.

Fomento Economico Mexicano Company Profile

Fomento Económico Mexicano, SAB. de C.V. (FEMSA) is a Mexican multinational company active primarily in the retail and beverage sectors. Headquartered in Monterrey, Mexico, FEMSA’s operations span convenience store retailing, beverage bottling and distribution, and related logistics and consumer services. The company’s business model combines high-frequency retail outlets with large-scale beverage production and a regional supply chain network.

FEMSA Comercio, the company’s retail arm, operates a large chain of convenience stores under the OXXO brand and has expanded its retail footprint with complementary formats and services.