Why America Movil SAB de CV (ADR) Stock Jumped
Mexico-based telecommunications services company America Movil (NYSE: AMX) stock jumped as much as 12.5% on Friday following the company reporting that its third quarter swung to a profit. Shares are up 10.4% at the time of this writing.
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America Movil reported a third-quarter profit of 2.1 billion pesos, or $110 million. This is up from a loss of 2.9 billion pesos in the year-ago quarter. Further, revenue increased 12% from the year-ago quarter, driven by higher data revenue.
The stock may be up because the company's earnings before interest, tax, depreciation, and amortization of 67.7 billion pesos was well above the consensus estimate of analysts polled by The Wall Street Journal for 63.6 billion pesos. Revenue of 249.7 billion pesos was also higher than a consensus estimate for 240.1 billion pesos.
When asked about AT&T's offer to buy Time Warner during Movil's earnings call on Friday morning, chief executive Daniel Hajj emphasized how the deal highlights the importance of content, according to Reuters.
Hajj also said he didn't expect consolidation, but he noted Movil was open to opportunities.
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