America Movil (AMX) Gains 20.9% YTD: Will the Trend Last?

About this update from America Movil Sab De Cv Class B

America Movil AMX witnessed strong momentum this year, with its shares gaining 20.9% year to date compared with the sub-industry’s rise of 11.6%.The company is the leading provider of integrated telecommunications services in Latin America. It offers enhanced communications solutions in 25 countries in Latin America, the United States and Central and Eastern Europe.The company has expanded rapidly through acquisitions to become a leading Latin American regional wireless carrier. America Movil offers a vast range of wireless services, including prepaid voice services and wireless data services such as SMS, MMS, group messaging, SMS notification and Internet access.Image Source: Zacks Investment ResearchCatalysts Behind the Price SurgeLet’s delve deeper to unearth the factors working in favor of this Zacks Rank #2 (Buy) stock.The increase in share price is driven by the company’s robust financial performance. The company came up with an impressive performance in first-quarter 2023.The company reported net income per ADR of 51 cents for first-quarter 2023, up from 47 cents reported in the prior-year quarter. Net income in the March quarter was Mex$30,146 million or Mex$0.48 per share compared with Mex$30,797 million or Mex$0.48 per share in the year-ago quarter. Total quarterly revenues increased 1.7% to Mex$208,926 million owing to solid momentum in the equipment business segment.The company’s performance benefited from increasing broadband client base and wireless subscriber additions, especially in Brazil, Austria and Colombia. In the last quarter, it gained 1.1 million wireless subscribers, which included 1.9 million post-paid subscribers and net disconnections of 0.8 million in prepaid subscribers. As of Mar 31, 2023, the company had a total of 374.3 million access lines, including 300.9 million wireless subscribers and 73.4 million fixed-line revenue-generating units.The company aims to grow in other parts of the world by continuing to expand its subscriber base through the development of existing businesses and strategic acquisitions.The company’s acquisition of Brazil’s Oi and Nextel Brazil from NII Holdings has helped it significantly improve its market shares in Brazil. In the last reported quarter, the company added 944,000 post-paid subscribers from Brazil.Apart from that, the sale of the cellular towers located in the Dominican Republic and Peru...

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