America Movil Earnings: The Strong Mexican Peso Balances Slowing Growth, Colombian Weakness

We are maintaining our America Movil fair value estimate at $21 per ADR despite the ongoing appreciation in the Mexican peso versus the U.S. dollar. With inflation in Mexico falling, wireless price increases are moderating faster than we’d forecast coming into the year. Mexico also accounts for less than half of Movil’s total revenue and other Latin American currencies aren’t as strong as the Mexican peso. In addition, the firm’s Colombian business continued to struggle during the second quarter. We believe the shares are fairly valued.