FEMSA Q4 Earnings on The Horizon: Will It Surprise Investors?

Fomento Economico Mexicano, S.A.B. de C.V. FMX, or FEMSA, is slated to report fourth-quarter 2025 earnings on Feb. 25. The company is likely to have witnessed top and bottom-line growth in the quarter under review.

The Zacks Consensus Estimate for FMX’s fourth-quarter revenues is pegged at $12.4 billion, indicating growth of 24.6% from the year-ago quarter's reported figure.

The consensus estimate for FMX’s quarterly earnings of $1.53 per share suggests a sharp rise from 46 cents reported in the year-earlier quarter. The consensus estimate for earnings has moved down a penny in the past 30 days.

In the last reported quarter, the company delivered a negative earnings surprise of 17%. It has delivered a negative earnings surprise in the trailing three quarters.

Key Factors to Influence FMX’s Q4 Results

FEMSA is experiencing growth across its business units, backed by effective growth strategies. The company has been making investments in digital and technology-driven initiatives. FEMSA is gaining pace in the digital space through its tech and innovation business unit — Digital@FEMSA. The unit has been focused on building a value-added digital and financial ecosystem for end customers and businesses. Its OXXO digital wallet, OXXO Premia and loyalty program have also been performing well.

FMX is on track with its strategy of creating a distribution platform through the expansion of its footprint in the specialized distribution industry. The company’s venture in the specialized distribution industry is linked with its plan of investing in adjacent businesses, leveraging capabilities across different markets and providing an opportunity for growth. Such efforts are expected to have contributed to its performance in the to-be-reported quarter.

FEMSA has been witnessing cost pressures, including inflation, rising labor expenses and supply-chain inefficiencies. Additionally, higher steel and aluminum prices have remained a key concern. These factors are likely to have adversely affected the company’s profitability in the to-be-reported quarter.

FMX’s Earnings Whispers

Our proven model conclusively predicts an earnings beat for FEMSA this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chance of an earnings beat. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

FEMSA has an Earnings ESP of +3.92% and a Zacks Rank of 3.

Price Performance & Valuation

The recent market movements show that FEMSA’s shares have risen 8.4% in the past three months compared with the industry's growth of 12.5%.

From the valuation standpoint, FEMSA is trading at a forward 12-month P/E multiple of 24.64X, exceeding the industry’s average of 20.08X.

Other Stocks Poised to Beat Earnings Estimates

Here are a few more companies, which according to our model, have the right combination of elements to beat on earnings this reporting cycle.

Monster Beverage Corporation MNST currently has an Earnings ESP of +17.16% and a Zacks Rank of 2. The consensus estimate for Monster Beverage’s quarterly revenues is pinned at $2.1 billion, which indicates nearly 13% growth from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Monster Beverage’s upcoming quarter’s EPS is pegged at 49 cents, which implies a 29% increase year over year. MNST delivered a trailing four-quarter earnings surprise of 5.5%, on average.

Celsius Holdings, Inc. CELH currently has an Earnings ESP of +6.46% and a Zacks Rank of 3. The consensus estimate for Celsius Holdings’ quarterly revenues is pegged at $638.2 million, which indicates a surge of 92.1% from the figure reported in the prior-year quarter. 

The Zacks Consensus Estimate for Celsius Holdings’ upcoming quarter’s EPS is pegged at 19 cents, which calls for a 35.7% jump year over year. CELH delivered a trailing four-quarter earnings surprise of roughly 42.9%, on average.

Freshpet FRPT currently has an Earnings ESP of +0.08% and a Zacks Rank of 3. The consensus mark for the upcoming quarter’s revenues is pegged at $285.8 million, which indicates a jump of 8.8% from the figure reported in the year-ago quarter. 

The Zacks Consensus Estimate for Freshpet’s quarterly earnings per share of 43 cents implies growth of 19.4% from the figure reported in the year-ago quarter. FRPT delivered a trailing four-quarter earnings surprise of roughly 33.3%, on average.

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This article originally published on Zacks Investment Research (zacks.com).

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