America Movil and Grupo Simec’s Second Quarter Earnings Preview for 2022

América Móvil

America Movil is headquartered in Mexico City, Mexico and is a Mexican telecommunications company. The company is the seventh largest mobile operator in terms of the number of subscribers in shares, and it is one of the largest companies in the world and one of Forbes Global 2000 companies.

The company provides integrated telecommunication services in Latin America. It offers enhanced communication solutions in 25 countries in Latin America, Eastern and Central Europe, and the United States.

America Movil will report operating and financial results for the second quarter of 2022 on July 12, after the market closes.

In the first quarter of 2022, the company reported net income of MX$30,797 million, or MX$0.48 per share, compared to MX$1,810 million, or MX$0.03 per share, in the same quarter last year. This increase was driven by strong operating profit and comprehensive financial income in the said quarter. The company gained 1 million wireless subscribers in the first quarter. This number includes 1.9 million postpaid subscribers. Colombia, Brazil and Austria were the top major contributors to postpaid subscribers.

Zacks announced that America’s Movil ranked No. 3 (Hold). The company’s profits for 2022 and 2023 are expected to improve YoY by 23.5% and 15.3%, respectively.

America Movil, Daily time frame

The asset is showing a negative intraday bias ahead of the earnings release, with major support at 19.05. A break below 19.05 could open the door to a low of 18.39 (May low) and a low of 17.59 (February low), while further rise above 20.52 could draw attention to 22.55 once again.

MACD signal line and histogram below the 0 line, RSI at 41.77, Stochastic continues declining. Average True Range (14) on an hourly time frame at 0.48.

The Bollinger Bands indicator indicates that the upper band of the volatility channel is at 20.75 and the lower band of the volatility channel is at 18.90 . The 20-day simple moving average is at 19.83. Here we notice that the upper, middle and lower bands are approaching each other, and this indicates a period of low volatility. Standard Deviation Index (20) is at 0.454.

GRUPO SIMEC

Grupo Simec is headquartered in Mexico and processes and manufactures long steel products in Mexico, Canada and the United States. The company serves industries such as construction, automotive, energy, mining, hand tools, manufacturing, off-road equipment, aviation, and more. The main products it produces include wire rods, rebar, structural and commercial forms.

Grupo Simec will release its second-quarter 2022 earnings report on July 11.

In the first quarter of 2022, the increase in the selling price led to an increase in the company’s net sales. Sales increased to 15,032 million Mexican pesos in 2022 compared to 13,355 million Mexican pesos in the same quarter of 2021. The company’s total profit in the first quarter of 2022 amounted to 3,842 million Mexican pesos, compared to 3,300 million Mexican pesos in the same period in 2021, and this is a 16% increase.

The asset is showing an intraday increasing positive bias ahead of the earnings release, with major support at 28.54 . A break below 25.28 could open the door to a low of 25.06 (May low) and a low of 23.73 (January low), while further rise above 31.52 could draw attention to the 36 area.

The Bollinger Bands indicator indicates that the upper band of the volatility channel is located at 33.73 and the lower band of the volatility channel is located at 27.78 . The 20 day simple moving average is at 30.77 . Here we notice that the upper, middle and lower bands are moving away from each other, and this indicates a period of high volatility. Standard Deviation Index (20) is located at 1.484.

 

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Eslam Salam 

Market Analyst

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