ADRs in Focus: Latin American telecommunication ADRs slip

NEW YORK—Shares of U.S.-traded telecommunication companies based in Latin America fell sharply on Friday after America Movil SAB de CV, the No. 1 mobile phone company in Latin America, said its first-quarter profit fell 5 percent and missed analyst estimates.

The Bank of New York Latin Telecom ADR index lost 28.89 points, or 8.1 percent, to 358.84 in late afternoon trading. ADRs, or American Depositary Receipts, are securities that allow foreign companies to trade on U.S. markets.

Goldman Sachs analyst Stephen Graham cut Mexico City-based America Movil to "Neutral" from "Buy" in a note to investors on Friday, after the company said its first-quarter earnings fell to $1.3 billion, or 74 cents per ADR.

Analysts polled by Thomson Financial were expecting 88 cents per ADR, on average.

The results sent America Movil's shares tumbling $7.90, or 12.1 percent, to $57.24.

Other Latin American telecommunication ADRs also lost ground on Friday.

Telecom Argentina SA lost 81 cents, or 4.4 percent, to $17.55 after reaching a fresh 52-week low of $17.54 earlier in the session.

Brasil Telecom Participacoes SA fell $3.06, or 3.8 percent, to $77.62.

Compania de Telecomunicaciones de Chile SA lost 22 cents, or 2.6 percent, to $8.18.

Argentina's Nortel Inversora SA advanced 46 cents, or 2.7 percent, to $17.45.

The broader Latin American ADR market was lower on Friday, as the Bank of New York Latin America ADR index shed 3.49 points to 452.41.