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

Fomento Economico Mexicano (NYSE:FMX) posted its quarterly earnings results on Thursday. The company reported $0.92 EPS 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 business had revenue of $11.61 billion for the quarter, compared to analysts’ expectations 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 Stock Up 1.5%

Shares of FMX stock traded up $1.76 on Friday, hitting $120.00. The company’s stock had a trading volume of 465,963 shares, compared to its average volume of 421,721. The company has a debt-to-equity ratio of 0.39, a current ratio of 1.35 and a quick ratio of 1.02. Fomento Economico Mexicano has a fifty-two week low of $83.08 and a fifty-two week high of $120.65. The firm’s fifty day moving average price is $111.59 and its 200-day moving average price is $104.63. The stock 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.

Fomento Economico Mexicano Cuts Dividend

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

Insider Activity

In related news, Director Garza Alfonso Garza sold 52,311 shares of Fomento Economico Mexicano stock in a transaction on Friday, March 27th. The shares were sold at an average price of $11.19, for a total value of $585,360.09. Following the completion of the sale, the director owned 1,128,453 shares of the company’s stock, valued at approximately $12,627,389.07. The trade was a 4.43% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Over the last three months, insiders have sold 261,575 shares of company stock valued at $2,795,188. 5.68% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Fomento Economico Mexicano

Institutional investors and hedge funds have recently modified their holdings of the business. Northwestern Mutual Wealth Management Co. lifted its stake in shares of Fomento Economico Mexicano by 2,006.3% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 337 shares of the company’s stock valued at $35,000 after purchasing an additional 321 shares during the last quarter. Tower Research Capital LLC TRC lifted its position in Fomento Economico Mexicano by 42.5% during the 2nd quarter. Tower Research Capital LLC TRC now owns 439 shares of the company’s stock worth $45,000 after acquiring an additional 131 shares during the last quarter. Atlas Capital Advisors Inc. acquired a new position in Fomento Economico Mexicano during the 4th quarter worth $50,000. Brown Brothers Harriman & Co. lifted its position in Fomento Economico Mexicano by 220.8% during the 3rd quarter. Brown Brothers Harriman & Co. now owns 725 shares of the company’s stock worth $72,000 after acquiring an additional 499 shares during the last quarter. Finally, UMB Bank n.a. lifted its position in Fomento Economico Mexicano by 15.1% during the 4th quarter. UMB Bank n.a. now owns 733 shares of the company’s stock worth $74,000 after acquiring an additional 96 shares during the last quarter. Institutional investors and hedge funds own 61.00% of the company’s stock.

Analysts Set New Price Targets

Several equities analysts have recently commented on the stock. Barclays boosted 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 report on Tuesday, March 3rd. Weiss Ratings restated a “hold (c-)” rating on shares of Fomento Economico Mexicano in a report on Tuesday, April 21st. Zacks Research upgraded shares of Fomento Economico Mexicano from a “hold” rating to a “strong-buy” rating in a report on Thursday. Wall Street Zen upgraded shares of Fomento Economico Mexicano from a “hold” rating to a “buy” rating in a report on Saturday, April 25th. Finally, The Goldman Sachs Group boosted their price target on shares of Fomento Economico Mexicano from $113.00 to $128.00 and gave the company a “buy” rating in a report on Wednesday, February 11th. One investment analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and four have assigned a Hold rating to the stock. According to data from MarketBeat.com, Fomento Economico Mexicano currently has an average rating of “Moderate Buy” and an average 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.