NEW YORK (TheStreet) -- Shares of American Movil (AMX) are up 2.20% to $23.73 on heavy trading volume as the Mexico-based communications company plans a spin off of its wireless towers in Mexico as it studies how to break apart its wireless and land-line phone operations there, where tougher regulations are cutting into profits, Bloomberg reports
A spin off will better reflect the value of the towers, which can be rented to competitors, CEO Daniel Hajj said today.
Earlier, the company reported that sales for the second quarter gained 4% to $15.66 billion, ahead of analysts estimates of $15.35 billion. Also, that its profit was up 2.4% from the previous year to $5.1 billion.
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TheStreet Ratings team rates AMERICA MOVIL SA DE CV as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate AMERICA MOVIL SA DE CV (AMX) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its expanding profit margins, notable return on equity and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income."