Mexico City-based wireless service provider America Movil (NYSE:AMX) is on the move and ready to report its second-quarter 2007 earnings on July 24. Ahead of the release, we'll take a look at what expectations await the company:

What analysts say:

  • Buy, sell, or waffle? A total of 12 analysts give an opinion on owning ADRs in America Movil. And unlike soda cans that like to pop loose from their bundles, this 12-pack stays together -- all dozen analysts give the company a buy rating. America Movil also holds a top-notch five-star stock rating in the Motley Fool CAPS community.
  • Revenues. On average, analysts predict a jump of roughly 34% in quarterly revenue to $6.7 billion when compared to the same quarter last year.
  • Earnings. Profits are predicted to vault 43% to $0.77 per share.

What management says:
America Movil has been blazing a trail of growth over the last few years as the company diversifies wired and wireless operations across the Americas. Wireless subscriber growth has been impressive -- 30.4% in the most recent quarter compared to a year ago. The company also highlights the diversified nature of its customer base in that "Mexico now accounts for only 34% of our subscriber base, while our South American operations have come to represent 52% of our subscribers."

America Movil pretty much sums up its consolidated performance in one sentence: "As our revenue base gains scale driven by service revenues that have been expanding at a rapid pace, the relative effort entailed by growth has become less taxing, which is manifesting itself in better EBITDA margins in practically all our operations." Margin improvements have also come on the back of lower handset costs, as mobile telephone and technology manufacturers such as Nokia (NYSE:NOK), Qualcomm (NASDAQ:QCOM), and Motorola (NYSE:MOT) have all worked feverishly over the last few years to provide ultra-low-cost handsets to emerging markets in China, India, and Latin America.

What management does:
The improvements that America Movil cites in its discussion of operations definitely show through in the financials. Looking at the rolling-12-month margins for the last six quarters, steady improvements in gross margins and dramatic gains in operating margins are evident.

Margins %

12/05

3/06

6/06

9/06

12/06

3/07

Gross

50.5%

51.8%

53.1%

53.4%

53.3%

54.4%

Operating

18.6%

19.6%

21.9%

23.1%

25.1%

27.1%

Net

16.8%

19.2%

19.4%

21.4%

18.3%

19.4%
All data courtesy of Capital IQ, a division of Standard & Poor's. Data reflects trailing-12-month performance for the quarters ended in the named months.

One Fool says:
America Movil has an impressive track record of operations in just about every market in which it operates. The company continues to see solid subscriber growth even in saturated markets such as Argentina and has successfully integrated Puerto Rican assets bought from Verizon (NYSE:VZ). It's also keen on further expanding by means of acquisition to compete with other strong global players like Telefonica (NYSE:TEF) and Vodafone (NYSE:VOD).

At this point, America Movil is firing on all cylinders, and investors have been bidding shares up in tandem. Expectations on the company are high, so investors will want to closely review this quarter's growth and margin trends to see if there are any apparent bumps in the wireless road ahead.

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Fool contributor Dave Mock never truly appreciated tequila's finer points during his college days. He owns shares of Motorola and Qualcomm. Vodafone is an Inside Value recommendation. Dave is the author of The Qualcomm Equation. The Fool's disclosure policy would never pour alcohol down an investor's throat, blow a whistle, and nod to the cheers of others.