Walmex Drops to One-Month Low After Earnings Miss Estimates

  • Mexico's biggest retailer drops on profitability concern
  • Fourth-quarter earnings 15 percent below BTG expectations

Wal-Mart de Mexico SAB, the nation’s biggest retailer, fell the most in a month after its fourth-quarter earnings came in well below some estimates.

Walmex, as the Mexico City-based company is known, said its earnings before interest, taxes, depreciation and amortization declined 6.1 percent from a year earlier. The stock dropped 5.2 percent to 42.40 pesos at the close of trading Wednesday, the biggest decline on Mexico’s IPC index.

In a conference call with investors Tuesday, Chief Financial Officer Pedro Farah said 2015 was a year of “transition” for the company. Walmex’s fourth-quarter results were 15 percent below expectations, according to BTG Pactual.

"It’s a miss with no signs of operating leverage," Daniel Sanchez and Alvaro Garcia, analysts at BTG Pactual, wrote in a note to clients Wednesday.

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