Walmex Drops to One-Month Low After Earnings Miss Estimatesby
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.