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AB InBev (BUD) Q3 Earnings to Reflect the SABMiller Effect
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Anheuser-Busch InBev SA/NV (BUD - Free Report) , alias AB InBev, is slated to release third-quarter 2017 results on Oct 26. Last quarter, the company delivered a negative earnings surprise of 16.7%.
In fact, AB InBev has reported negative surprises in the trailing four quarters, with an average miss of 32.8%. Let’s see how things are shaping up prior this announcement.
What to Expect?
Analysts polled by Zacks expect AB InBev to register a significant improvement in the top and bottom lines during the third quarter. With estimates showing an upward revision of 31 cents in the past 30 days, the Zacks Consensus Estimate is currently pegged at $1.50. This exhibits a year-over-year increase of 81% against a decline of more than 10% witnessed in the preceding quarter.
Total revenue is also anticipated to surge 39% to $15.4 billion, following an increase of 31.2% in the second quarter.
Factors at Play
AB InBev is likely to benefit from its impressive brand portfolio, solid geographical reach and focus on business expansion. The company is well on track with SABMiller’s integration — which reinforced its presence in the brewing space — and realized synergies worth $335 million during second-quarter 2017.
The company also remains focused on portfolio diversification to resonate with consumers’ evolving drinking patterns. Given the accelerated shift toward low and no-alcohol products, AB InBev keeps introducing near beer alternatives, along with no- and low-alcohol beers to provide more choices to consumers.
AB InBev’s expansion in the craft beer space further highlights its practice of capitalizing on all the possible growth avenues. To make the most of this lucrative market, this Belgium-based brewer made numerous acquisitions to strengthen its position in the competitive craft beer space.
While all is well with AB InBev, the company delivered its sixth consecutive negative earnings surprise in second-quarter 2017. This can be attributed to weakness in Brazil, negative impact of mark-to-market adjustment and increased finance costs. Nevertheless, with Brazilian economy on a path of recovery, it is likely to benefit the company going forward. However, analysts believe that total volume in the third quarter is likely to be impacted by hurricanes, which affected the two major beer states — Texas and Florida.
Anheuser-Busch Inbev SA Price, Consensus and EPS Surprise
Our proven model does not conclusively show that AB InBev is likely to beat estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. AB InBev has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at $1.50 per share. While the company’s Zacks Rank #3 increases the predictive power of ESP, we need to have a positive ESP to be confident about an earnings surprise. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks Poised to Beat Earnings Estimates
Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
The Estée Lauder Companies Inc. (EL - Free Report) has an Earnings ESP of +0.34% and a Zacks Rank #2.
The Hain Celestial Group, Inc. (HAIN - Free Report) has an Earnings ESP of +7.00% and a Zacks Rank #2.
Zacks' Hidden Trades
While we share many recommendations and ideas with the public, certain moves are hidden from everyone but selected members of our portfolio services. Would you like to peek behind the curtain today and view them? Starting now, for the next month, I invite you to follow all Zacks' private buys and sells in real time from value to momentum...from stocks under $10 to ETF to option movers...from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy). You can even look inside portfolios so exclusive that they are normally closed to new investors.
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AB InBev (BUD) Q3 Earnings to Reflect the SABMiller Effect
Anheuser-Busch InBev SA/NV (BUD - Free Report) , alias AB InBev, is slated to release third-quarter 2017 results on Oct 26. Last quarter, the company delivered a negative earnings surprise of 16.7%.
In fact, AB InBev has reported negative surprises in the trailing four quarters, with an average miss of 32.8%. Let’s see how things are shaping up prior this announcement.
What to Expect?
Analysts polled by Zacks expect AB InBev to register a significant improvement in the top and bottom lines during the third quarter. With estimates showing an upward revision of 31 cents in the past 30 days, the Zacks Consensus Estimate is currently pegged at $1.50. This exhibits a year-over-year increase of 81% against a decline of more than 10% witnessed in the preceding quarter.
Total revenue is also anticipated to surge 39% to $15.4 billion, following an increase of 31.2% in the second quarter.
Factors at Play
AB InBev is likely to benefit from its impressive brand portfolio, solid geographical reach and focus on business expansion. The company is well on track with SABMiller’s integration — which reinforced its presence in the brewing space — and realized synergies worth $335 million during second-quarter 2017.
The company also remains focused on portfolio diversification to resonate with consumers’ evolving drinking patterns. Given the accelerated shift toward low and no-alcohol products, AB InBev keeps introducing near beer alternatives, along with no- and low-alcohol beers to provide more choices to consumers.
AB InBev’s expansion in the craft beer space further highlights its practice of capitalizing on all the possible growth avenues. To make the most of this lucrative market, this Belgium-based brewer made numerous acquisitions to strengthen its position in the competitive craft beer space.
While all is well with AB InBev, the company delivered its sixth consecutive negative earnings surprise in second-quarter 2017. This can be attributed to weakness in Brazil, negative impact of mark-to-market adjustment and increased finance costs. Nevertheless, with Brazilian economy on a path of recovery, it is likely to benefit the company going forward. However, analysts believe that total volume in the third quarter is likely to be impacted by hurricanes, which affected the two major beer states — Texas and Florida.
Anheuser-Busch Inbev SA Price, Consensus and EPS Surprise
Anheuser-Busch Inbev SA Price, Consensus and EPS Surprise | Anheuser-Busch Inbev SA Quote
What the Zacks Model Unveils?
Our proven model does not conclusively show that AB InBev is likely to beat estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. AB InBev has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at $1.50 per share. While the company’s Zacks Rank #3 increases the predictive power of ESP, we need to have a positive ESP to be confident about an earnings surprise. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks Poised to Beat Earnings Estimates
Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Avon Products, Inc. has an Earnings ESP of +2.94% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Estée Lauder Companies Inc. (EL - Free Report) has an Earnings ESP of +0.34% and a Zacks Rank #2.
The Hain Celestial Group, Inc. (HAIN - Free Report) has an Earnings ESP of +7.00% and a Zacks Rank #2.
Zacks' Hidden Trades
While we share many recommendations and ideas with the public, certain moves are hidden from everyone but selected members of our portfolio services. Would you like to peek behind the curtain today and view them?
Starting now, for the next month, I invite you to follow all Zacks' private buys and sells in real time from value to momentum...from stocks under $10 to ETF to option movers...from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy). You can even look inside portfolios so exclusive that they are normally closed to new investors.
Click here for Zacks' secret trade>>