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what it is
Liberty Latin America sells internet, mobile, video, and phone service across Puerto Rico, Chile, and the Caribbean.
how it gets paid
Last year Liberty Latin Amer made $4.4B in revenue. broadband internet was the main engine at $1.54B, or 35% of sales.
why growth slowed
Revenue fell 0.1% last year. The business posted lackluster fourth-quarter results, even with positive postpaid additions in Puerto Rico.
what just happened
Revenue jumped to $3.3B, but EPS still came in at -$0.27 and missed expectations.
At a glance
C+ balance sheet — struggling to keep the lights on
10/100 earnings predictability — expect surprises
7.0% return on capital — nothing to write home about
xvary composite: 36/100 — weak
-$0.10 fy2027 eps est
What they do
Liberty Latin America sells internet, mobile, video, and phone service across Puerto Rico, Chile, and the Caribbean.
Telecom is sticky because ripping out your home internet or moving your business network is a pain. Liberty Latin America serves multiple island and regional markets with established brands, and that scale supports $4.4B in annual revenue. You are paying for pipes, towers, and customer habits that are annoying to replace.
How they make money
$4.4B
annual revenue · their business grew -0.1% last year
broadband internet
$1.54B
+0.0%
mobile services
$1.23B
+0.0%
video services
$0.79B
0.1%
business connectivity
$0.53B
+0.0%
fixed voice and other
$0.31B
0.1%
The products that matter
delivers broadband, cable and mobile connectivity
Broadband, Mobile and Cable Services
$4.4B revenue · entire operating story
It is the whole $4.4B business. That matters because there is no hidden second engine here — if these regional telecom operations do not improve, nothing else bails you out.
100% of revenue
Key numbers
$7
18-mo target
The 18-month target is $7 versus $8.01 today, so the near-term setup points to about 13% downside, not upside.
$7.9B
long-term debt
Debt this large against a roughly $2B market cap means lenders matter almost as much as customers.
83%
debt/capital
Debt-to-capital means how much of the business is financed with borrowing instead of equity, so 83% tells you the balance sheet is doing acrobatics.
2.4%
operating margin
Operating margin means profit after running the business but before interest and taxes, so 2.4% leaves very little cushion.
Financial health
C+
strength
- balance sheet grade C+ — weak — may struggle to fund operations
- risk rank 4 — safer than 20% of stocks
- price stability 30 / 100
- long-term debt $7.9B (83% of capital)
- net profit margin 4.7% — keeps 5 cents of every dollar in revenue
- return on equity 14% — $0.14 profit for every $1 investors have put in
C+ — balance sheet grade and long-term debt are flagged. this stock carries more risk than average.
Total return vs. market
You invested $10,000 in LILA 3 years ago → it's now worth $8,710.
The index would have given you $13,880.
source: institutional data · total return
What just happened
missed estimates
Revenue jumped to $3.3B, but EPS still came in at -$0.27 and missed expectations.
The business posted lackluster fourth-quarter results, even with positive postpaid additions in Puerto Rico. Consensus expected -$0.21, and actual EPS was -$0.27, a 28.57% miss.
$3.3B
revenue
$0.27
eps
n/a
n/a
the number that mattered
The key number was the 28.57% EPS miss, because this stock already carries $7.9B of long-term debt and cannot afford sloppy execution.
-
liberty latin america posted lackluster fourth-quarter results.revenues slightly expanded to about $1.16 billion, versus the 2024 tally, as cable & wireless panama and liberty networks each delivered double-digit top-line gains.
-
too, its operations in puerto rico registered positive postpaid additions.however, hurricane melissa struck its jamaican operations in late october, which reduced receipts by $20 million. the company has also been working to reduce its cost structure, and these improvements aided the bottom line, while it collected $81 million in insurance proceeds.
-
still, the company posted a $0.27-per-share loss during the quarter.
-
a recovery in its jamaican market should drive 2026 performance.
-
liberty’s fixed infrastructure sustained a significant amount of storm damage, leaving 25% of broadband customers offline in early 2026.restoration of service in western jamaica will be heavily tied to the reconstruction of homes and businesses. management anticipates a roughly $100 million headwind from hurricane melissa in 2026, though improvement appears likely in the second half of this year.
source: company earnings report, 2026
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What could go wrong
the #1 risk is hurricane-driven infrastructure damage in jamaica.
med
jamaica restoration takes longer than expected
This one is not theoretical. Hurricane Melissa already reduced receipts by $20M and management expects roughly $100M of pressure in 2026 tied to damage and recovery work.
That turns weather into an earnings event. On a $4.4B revenue base, $100M is about 2% of annual sales before you even get to repair costs or customer churn.
med
the balance sheet leaves little room for bad luck
Long-term debt is $7.9B, or 83% of capital. That is the kind of capital structure that makes small operating misses feel large.
If revenue recovery slips while interest and financing demands stay put, equity holders absorb the squeeze. That is why a 35% operating margin still coexists with a FY2026 EPS estimate of -$0.30.
med
competition and regulation stay local, messy, and expensive
Regional telecom markets rarely hand out easy pricing power. You are dealing with local competition, regulation, and the constant need to reinvest in network quality.
That matters because there is no second business segment to hide behind. All $4.4B of revenue depends on these markets behaving well enough to support returns.
med
earnings quality stays hard to read
The current quarter already arrives with two profit narratives: one source shows $0.02 EPS, another cites a $0.27 loss per share. That does not help trust.
When earnings predictability is 10/100, the market usually assigns a lower quality multiple. You are not just betting on improvement. You are betting on cleaner interpretation of improvement.
A company expecting roughly $100M of hurricane-related pressure while carrying $7.9B of long-term debt does not need many more setbacks for the equity story to get thinner.
source: institutional data · regulatory filings · risk analysis
Pay attention to
earnings
next earnings (may 05, 2026)
Watch for management's latest read on Jamaica restoration, storm-related pressure, and whether the path to the $5B revenue estimate still looks realistic.
trend
jamaica recovery trend
The market does not need perfection. It needs proof that the $100M 2026 hit is a one-episode problem, not a recurring feature of the story.
risk
debt and funding pressure
With $7.9B of long-term debt and a C+ balance sheet, any sign of weaker cash generation matters fast.
metric
revenue vs. losses
Revenue growth is nice. The real test is whether it starts shrinking the expected -$0.30 full-year EPS loss.
Analyst rankings
short-term outlook
average
Momentum score 3. In human-speak, analysts do not see a strong near-term edge here.
risk profile
below average
Stability score 4 means the ride is rougher than most. You should expect bigger swings.
chart momentum
average
Technical score 3 says the chart is not screaming either way. This is a wait-for-proof setup.
earnings predictability
10 / 100
That is low. When earnings are this hard to model, the market usually demands a discount.
source: institutional data
Institutional activity
institutions have been net selling for 3 consecutive quarters — 35 buyers vs. 35 sellers in 4q2025. total institutional holdings: 29.5M shares. net selling for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$3
$10
$8
current price
$7
target midpoint · 13% from current · 3-5yr high: $14 (+75% · 15% ann'l return)
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