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

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

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 Price Performance

NYSE FMX opened at $120.00 on Friday. The stock has a 50-day simple moving average of $111.59 and a 200 day simple moving average of $104.63. Fomento Economico Mexicano has a twelve month low of $83.08 and a twelve month high of $120.65. The stock has a market capitalization of $41.46 billion, a PE ratio of 42.10, a P/E/G ratio of 0.81 and a beta of 0.42. The company has a debt-to-equity ratio of 0.39, a quick ratio of 1.02 and a current ratio of 1.35.

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 given a dividend of $0.6658 per share. 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 currently 83.86%.

Insider Transactions at Fomento Economico Mexicano

In other Fomento Economico Mexicano news, Director Garza Alfonso Garza sold 52,311 shares of Fomento Economico Mexicano stock in a transaction that occurred on Friday, March 27th. The stock was sold at an average price of $11.19, for a total value of $585,360.09. Following the transaction, the director directly owned 1,128,453 shares of the company’s stock, valued at $12,627,389.07. The trade was a 4.43% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Over the last quarter, insiders sold 261,575 shares of company stock valued at $2,795,188. Company insiders own 5.68% of the company’s stock.

Institutional Investors Weigh In On Fomento Economico Mexicano

Hedge funds and other institutional investors have recently modified their holdings of the stock. Northwestern Mutual Wealth Management Co. raised its stake in shares of Fomento Economico Mexicano by 2,006.2% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 337 shares of the company’s stock valued at $35,000 after buying an additional 321 shares in the last quarter. Tower Research Capital LLC TRC boosted its position in shares of Fomento Economico Mexicano by 42.5% during the 2nd quarter. Tower Research Capital LLC TRC now owns 439 shares of the company’s stock valued at $45,000 after acquiring an additional 131 shares in the last quarter. Atlas Capital Advisors Inc. bought a new stake in Fomento Economico Mexicano in the fourth quarter valued at about $50,000. Brown Brothers Harriman & Co. increased its stake in Fomento Economico Mexicano by 220.8% in the third quarter. Brown Brothers Harriman & Co. now owns 725 shares of the company’s stock valued at $72,000 after acquiring an additional 499 shares during the period. Finally, UMB Bank n.a. raised its position in Fomento Economico Mexicano by 15.1% in 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 in the last quarter. Institutional investors and hedge funds own 61.00% of the company’s stock.

Analyst Ratings Changes

Several research firms have weighed in on FMX. Barclays raised their target price on 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 reissued a “hold (c-)” rating on shares of Fomento Economico Mexicano in a research note on Tuesday, April 21st. Wall Street Zen upgraded Fomento Economico Mexicano from a “hold” rating to a “buy” rating in a report on Saturday, April 25th. JPMorgan Chase & Co. upped their target price on Fomento Economico Mexicano from $98.00 to $117.00 and gave the stock a “neutral” rating in a research report on Monday, April 20th. Finally, UBS Group increased their price target on Fomento Economico Mexicano from $109.00 to $122.00 and gave the company a “buy” rating in a report on Friday, March 20th. Three analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. According to MarketBeat, the company presently has a consensus rating of “Hold” and an average target price of $113.17.

About Fomento Economico Mexicano

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.