• EN

    • -+ 0.00%
    -+ 0.00%
    -+ 0.00%

    Earnings Miss Might Change The Case For Investing In Millicom International Cellular Stock (TIGO)

    Simply Wall St·11/14/2026 02:25:11
    Listen to the news
    • Millicom International Cellular reported third quarter 2026 sales of US$2,276 million and net income of US$98 million, with basic earnings per share of US$0.58 from continuing operations, alongside nine month sales of US$6,440 million and net income of US$316 million.
    • The latest update shows sales for both the quarter and the first nine months higher than the prior year figures, while net income and earnings per share for the same periods are lower than a year ago, highlighting pressure on profitability despite stronger top line performance.
    • The focus now is on how Millicom International Cellular's investment narrative holds up when higher sales coincide with sharply lower earnings and profitability.

    Scan how Millicom International Cellular's profit pressure compares with peers facing similar trade offs between scale and earnings power by reviewing the hand picked 32 high quality undervalued stocks.

    Millicom International Cellular Investment Narrative Recap

    To stay invested in Millicom International Cellular, you largely need to believe that its Latin American footprint can keep converting prepaid users into higher value postpaid and convergent customers while holding cost discipline and managing legal and balance sheet issues. The latest quarter shows that theme being tested. Stronger sales sit alongside weaker earnings, which puts more scrutiny on execution rather than changing the story outright.

    In the near term, the key swing factor is whether integration of past acquisitions and prepaid to postpaid migration can feed through to healthier margins and equity free cash flow. The biggest risk right now is that higher net debt of about US$8.1b and interest that is not well covered by earnings become harder to service if profitability stays compressed.

    The analyst consensus Narrative on Simply Wall St ties much of the Millicom International Cellular thesis to consolidation of operations in Ecuador, Uruguay and Colombia, along with ongoing cost and capital allocation reviews that support high margins. The latest earnings, with nine month net income of US$316 million against US$6,440 million of sales, keep the focus squarely on whether those efficiency programs can offset profit pressure.

    That same Narrative also highlights balance sheet work, including tower divestments and liability management, as an important catalyst for reducing leverage toward a 2.0x to 2.5x range. With interest payments already flagged as poorly covered, the current earnings softness makes future refinancing terms and the pace of debt reduction an even more important operational watchpoint for holders of the stock.

    Millicom International Cellular's current analyst storyline points to revenues of US$9.6b and earnings of US$1.1b by 2029, based on expectations for about 9.8% yearly revenue growth and an earnings increase of roughly US$431m from US$669.0m today.

    Uncover how Millicom International Cellular's fair value indicates a 22% potential upside to its current price that may not last much longer.

    NasdaqGS:TIGO 1-Year Stock Price Chart
    NasdaqGS:TIGO 1-Year Stock Price Chart

    Exploring Other Perspectives

    Some of the most optimistic analysts pin their story on Millicom International Cellular pushing margins higher through its integration playbook. Before this earnings release, the bullish camp was talking about revenue of roughly US$10.3b and earnings of US$1.6b by 2029. You can use those upbeat assumptions as a contrast and explore how views might shift after this profit squeeze.

    Explore 3 other Millicom International Cellular fair value estimates, including one that suggests potential upside of up to 342% from the current price.

    Form Your Own Verdict

    Don't just follow the ticker. Dig into the data and build a conviction that's truly your own.

    Looking for more investment ideas beyond Millicom International Cellular?

    Once you have a view on Millicom International Cellular, it often helps to compare the story with other companies that match the type of opportunities you are looking for. Use the Simply Wall St Screener to filter the market in a few clicks and line up alternatives that align with your risk tolerance and income needs.