We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Things to Note Before AB InBev (BUD) Reports Q4 Earnings
Read MoreHide Full Article
Anheuser-Busch InBev SA/NV (BUD - Free Report) , also known as AB InBev, is slated to release fourth-quarter 2021 earnings on Feb 24. The leading alcohol beverage company is likely to register year-over-year revenue growth when it reports fourth-quarter 2021 results. Moreover, the company’s top and bottom lines for 2021 are expected to increase year over year.
The Zacks Consensus Estimate for AB InBev’s fourth-quarter revenues is pegged at $13.57 billion, suggesting 6.3% growth from the year-ago quarter’s reported number. The consensus mark for 2021 revenues is pinned at $53.78 billion, indicating growth of 14.7% from the prior-year reported figure.
For fourth-quarter earnings, the consensus mark is pegged at 77 cents per share, suggesting a 28.7% decline from the prior-year reported figure. The consensus estimate has been unchanged in the past 30 days. The consensus estimate for 2021 earnings is pegged at $2.82 per share, indicating growth of 47.6% from the prior-year reported figure.
In the last reported quarter, the company delivered a negative earnings surprise of 21.9%. Its earnings missed the Zacks Consensus Estimate by 12.9%, on average, in the trailing four quarters.
AB InBev’s top line has been reflecting continued business momentum, owing to relentless execution, investment in its brands and accelerated digital transformation. The company’s revenues in the fourth quarter are expected to have benefited from robust organic revenue growth, driven by continued volume and revenue per hectoliter (hl) growth.
BUD’s revenue-management initiatives and premiumization efforts are likely to have aided revenues per hl in the fourth quarter. Growth in the premium portfolio and expansion of the Beyond Beer portfolio are expected to have driven volume gains in the to-be-reported quarter.
On its last reported quarter’s earnings call, management anticipated EBITDA growth of 10-12% for 2021. It continues to expect revenue growth to be higher than EBITDA growth, driven by strong volume and pricing.
The company has been demonstrating fundamental strength and continued resilience in the global beer category. The premiumization of the beer industry has been a key growth opportunity for AB InBev. The company has been investing in developing a diverse portfolio of global, international, and crafts and specialty premium brands in its markets. Gains from these investments are likely to have boosted the company’s top line in the fourth quarter. The expansion of the Beyond Beer portfolio, along with investments in B2B platforms, e-commerce and digital marketing, also bodes well.
However, AB InBev’s bottom line is expected to have been marred by adverse currency translations and commodity cost inflation, which have been weighing on EBITDA. Higher supply-chain costs in some markets have also been concerning. This is expected to have hurt the EBITDA margin in the to-be-reported quarter. Higher SG&A expenses, attributed to increased variable compensation accruals and marketing investments, are also expected to have hurt the bottom line in the to-be-reported quarter.
On the last reported quarter’s earnings call, management expected higher commodity costs to continue exerting pressure on input costs. The company also anticipated volatile foreign currency.
Zacks Model
Our proven model doesn’t conclusively predict an earnings beat for AB InBev this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
AB InBev has a Zacks Rank #3 and Earnings ESP of 0.00%.
Stocks Poised to Beat Earnings Estimates
Here are some companies that you may want to consider, as our model shows that these have the right combination of elements to deliver an earnings beat.
Lowe's Companies (LOW - Free Report) currently has an Earnings ESP of +6.81% and a Zacks Rank of 2. The company is likely to register an increase in the top and bottom lines when it reports fourth-quarter fiscal 2021 results. The consensus mark for LOW’s quarterly revenues is pegged at $20.8 billion, which suggests a rise of 2.5% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Lowe's Companies’ earnings has been unchanged at $1.71 per share in the past 30 days. The consensus estimate indicates a 28.6% increase from $1.33 reported in the year-ago quarter.
Grocery Outlet (GO - Free Report) currently has an Earnings ESP of +8.45% and a Zacks Rank of 3. The company is likely to register a decline in the top and bottom lines when it reports fourth-quarter 2021 numbers. The consensus mark for GO’s quarterly earnings has been unchanged in the past 30 days at 20 cents per share. However, the consensus estimate suggests a 16.7% decline from the year-ago quarter’s reported number.
The Zacks Consensus Estimate for Grocery Outlet’s quarterly revenues is pegged at $774.2 million, which suggests a decline of 4% from the figure reported in the prior-year quarter.
Foot Locker (FL - Free Report) currently has an Earnings ESP of +8.80% and a Zacks Rank of 3. The company is likely to register top-line growth when it reports fourth-quarter fiscal 2021 results. The consensus mark for FL’s quarterly revenues is pegged at $2.35 billion, which suggests 7.3% growth from the figure reported in the prior-year quarter.
The consensus mark for FL’s quarterly earnings has moved up by a penny in the past seven days to $1.47 per share. However, the consensus estimate suggests a decline of 5.2% from the year-ago quarter.
Image: Bigstock
Things to Note Before AB InBev (BUD) Reports Q4 Earnings
Anheuser-Busch InBev SA/NV (BUD - Free Report) , also known as AB InBev, is slated to release fourth-quarter 2021 earnings on Feb 24. The leading alcohol beverage company is likely to register year-over-year revenue growth when it reports fourth-quarter 2021 results. Moreover, the company’s top and bottom lines for 2021 are expected to increase year over year.
The Zacks Consensus Estimate for AB InBev’s fourth-quarter revenues is pegged at $13.57 billion, suggesting 6.3% growth from the year-ago quarter’s reported number. The consensus mark for 2021 revenues is pinned at $53.78 billion, indicating growth of 14.7% from the prior-year reported figure.
For fourth-quarter earnings, the consensus mark is pegged at 77 cents per share, suggesting a 28.7% decline from the prior-year reported figure. The consensus estimate has been unchanged in the past 30 days. The consensus estimate for 2021 earnings is pegged at $2.82 per share, indicating growth of 47.6% from the prior-year reported figure.
In the last reported quarter, the company delivered a negative earnings surprise of 21.9%. Its earnings missed the Zacks Consensus Estimate by 12.9%, on average, in the trailing four quarters.
AnheuserBusch InBev SANV Price and EPS Surprise
AnheuserBusch InBev SANV price-eps-surprise | AnheuserBusch InBev SANV Quote
Key Factors to Note
AB InBev’s top line has been reflecting continued business momentum, owing to relentless execution, investment in its brands and accelerated digital transformation. The company’s revenues in the fourth quarter are expected to have benefited from robust organic revenue growth, driven by continued volume and revenue per hectoliter (hl) growth.
BUD’s revenue-management initiatives and premiumization efforts are likely to have aided revenues per hl in the fourth quarter. Growth in the premium portfolio and expansion of the Beyond Beer portfolio are expected to have driven volume gains in the to-be-reported quarter.
On its last reported quarter’s earnings call, management anticipated EBITDA growth of 10-12% for 2021. It continues to expect revenue growth to be higher than EBITDA growth, driven by strong volume and pricing.
The company has been demonstrating fundamental strength and continued resilience in the global beer category. The premiumization of the beer industry has been a key growth opportunity for AB InBev. The company has been investing in developing a diverse portfolio of global, international, and crafts and specialty premium brands in its markets. Gains from these investments are likely to have boosted the company’s top line in the fourth quarter. The expansion of the Beyond Beer portfolio, along with investments in B2B platforms, e-commerce and digital marketing, also bodes well.
However, AB InBev’s bottom line is expected to have been marred by adverse currency translations and commodity cost inflation, which have been weighing on EBITDA. Higher supply-chain costs in some markets have also been concerning. This is expected to have hurt the EBITDA margin in the to-be-reported quarter. Higher SG&A expenses, attributed to increased variable compensation accruals and marketing investments, are also expected to have hurt the bottom line in the to-be-reported quarter.
On the last reported quarter’s earnings call, management expected higher commodity costs to continue exerting pressure on input costs. The company also anticipated volatile foreign currency.
Zacks Model
Our proven model doesn’t conclusively predict an earnings beat for AB InBev this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
AB InBev has a Zacks Rank #3 and Earnings ESP of 0.00%.
Stocks Poised to Beat Earnings Estimates
Here are some companies that you may want to consider, as our model shows that these have the right combination of elements to deliver an earnings beat.
Lowe's Companies (LOW - Free Report) currently has an Earnings ESP of +6.81% and a Zacks Rank of 2. The company is likely to register an increase in the top and bottom lines when it reports fourth-quarter fiscal 2021 results. The consensus mark for LOW’s quarterly revenues is pegged at $20.8 billion, which suggests a rise of 2.5% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Lowe's Companies’ earnings has been unchanged at $1.71 per share in the past 30 days. The consensus estimate indicates a 28.6% increase from $1.33 reported in the year-ago quarter.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Grocery Outlet (GO - Free Report) currently has an Earnings ESP of +8.45% and a Zacks Rank of 3. The company is likely to register a decline in the top and bottom lines when it reports fourth-quarter 2021 numbers. The consensus mark for GO’s quarterly earnings has been unchanged in the past 30 days at 20 cents per share. However, the consensus estimate suggests a 16.7% decline from the year-ago quarter’s reported number.
The Zacks Consensus Estimate for Grocery Outlet’s quarterly revenues is pegged at $774.2 million, which suggests a decline of 4% from the figure reported in the prior-year quarter.
Foot Locker (FL - Free Report) currently has an Earnings ESP of +8.80% and a Zacks Rank of 3. The company is likely to register top-line growth when it reports fourth-quarter fiscal 2021 results. The consensus mark for FL’s quarterly revenues is pegged at $2.35 billion, which suggests 7.3% growth from the figure reported in the prior-year quarter.
The consensus mark for FL’s quarterly earnings has moved up by a penny in the past seven days to $1.47 per share. However, the consensus estimate suggests a decline of 5.2% from the year-ago quarter.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.