America Movil Earnings: Slowing Growth in Mexico Isn’t a Major Concern

Slowing revenue growth, especially in Mexico, stood out in America Movil’s third-quarter results, but we don’t believe investors have reason for concern. Our fair value estimate remains $21 per ADR, and the shares look attractive after selling off on the earnings release. Total service revenue declined 4.3% year over year but would have increased 3.8%, excluding the impact of the strong Mexican peso. On the same basis, service revenue increased about 6% and 5% during the first and second quarters, respectively.