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Factors Likely to Influence AB InBev's (BUD) Q2 Earnings
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Anheuser-Busch InBev SA/NV (BUD - Free Report) , also known as AB InBev, is slated to release second-quarter 2023 earnings on Aug 3. The leading alcohol beverage company is likely to register year-over-year revenue growth when it reports second-quarter 2023 results.
The Zacks Consensus Estimate for AB InBev’s second-quarter revenues is pegged at $15.4 billion, suggesting 3.9% growth from the year-ago quarter’s reported number. For second-quarter earnings, the consensus mark is pegged at 68 cents per share, suggesting a 9.3% decline from the prior-year reported figure. The consensus estimate has moved down by a couple of cents in the past 30 days.
In the last reported quarter, the company delivered an earnings surprise of 1.6%. Its earnings beat the Zacks Consensus Estimate by 11.1%, on average, in the trailing four quarters.
AB InBev’s top line has been reflecting continued business momentum due to relentless execution, investment in its brands and accelerated digital transformation. The company has been benefiting from its unique commercial strategy, a strong brand portfolio and investments in operation excellence. These have been aiding market share growth across most key markets. Continued resilience in the global beer category is also expected to have aided the second-quarter performance.
BUD has been steadfastly growing its Beyond Beer portfolio, including ready-to-drink beverages like canned wine and canned cocktails, hard seltzers, cider and flavored malt beverages. The Beyond Beer trend has recently been gaining popularity due to the rise in demand for low-alcoholic or non-alcoholic drinks. The company has been focused on expanding its Beyond Beer portfolio, which has also been aiding the top line.
AB InBev is anticipated to have benefited from continued premiumization efforts and favorable industry trends in the second quarter. The company has been investing in a diverse portfolio of global, international, and crafts and specialty premium brands in its markets. Apart from the premium brands, BUD’s global brands lead the way in premiumization. These factors are likely to have boosted the company’s top line in the second quarter.
The rapid expansion of its digital platform and leveraging technology, such as B2B sales and other e-commerce platforms, have been the key drivers for BUD. The company has been witnessing an acceleration in the B2B platforms, e-commerce and digital marketing trends, aiding growth for the past few months. These are expected to have contributed significantly to the top and bottom lines in the to-be-reported quarter.
BUD’s revenue-management initiatives and premiumization efforts are likely to have aided revenues per hl in the second quarter. Growth in the premium portfolio and the expansion of the Beyond Beer portfolio are expected to have driven volume gains in the to-be-reported quarter.
However, AB InBev’s bottom line is expected to have been marred by adverse currency translations, commodity cost inflation and higher supply-chain costs in some markets. Higher commodity costs have been mainly resulting from increased aluminum and barley prices. BUD’s presence across various countries exposes it to negative currency translations.
On the last reported quarter’s earnings call, management expected higher commodity costs to keep exerting pressure on input costs. The company also anticipated volatile foreign currency.
Higher costs of sales and SG&A expenses are likely to have weighed on the company’s gross and operating margins. Elevated supply-chain costs have been primarily driving higher SG&A expenses for the past few quarters.
Our model predicts the cost of products sold, as a percentage of sales, to expand 20 bps year over year to 46.1% in the second quarter. A higher cost of products sold rate due to elevated input costs is likely to have led to a soft gross margin in the quarter. We estimate the gross margin to contract 20 bps to 53.9% in the to-be-reported quarter. We anticipate normalized EBIT to decline 80 bps to 25% in the second quarter.
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 -3.21%.
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.
Molson Coors (TAP - Free Report) has an Earnings ESP of +6.15% and sports a Zacks Rank of 1 at present. The Zacks Consensus Estimate for its quarterly revenues is pegged at $3.29 billion, which suggests growth of 12.6% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Molson Coors’ quarterly earnings has moved up 2.5% in the past seven days to $1.59 per share, suggesting growth of 33.6% from the year-ago quarter’s reported number. TAP’s earnings beat the consensus estimate in the trailing four quarters, delivering an earnings surprise of 32.1%, on average.
e.l.f. Beauty, Inc. (ELF - Free Report) has an Earnings ESP of +1.02% and flaunts a Zacks Rank #1 at present. The Zacks Consensus Estimate for its first-quarter fiscal 2024 revenues is pegged at $184.9 million, which suggests growth of 50.8% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for e.l.f. Beauty’s quarterly earnings has been unchanged in the past 30 days at 58 cents per share, suggesting growth of 48.7% from the year-ago quarter’s reported number. ELF’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, delivering an earnings surprise of 103.3%, on average.
Kellogg's (K - Free Report) has an Earnings ESP of +1.92% and a Zacks Rank of 3 at present. The Zacks Consensus Estimate for its second-quarter 2023 revenues is pegged at $4.6 billion, which suggests growth of 4.7% from the figure reported in the prior-year quarter.
The consensus estimate for Kellogg's quarterly earnings has been unchanged in the past 30 days at $1.11 per share, suggesting a decline of 5.9% from the year-ago quarter’s reported number. K’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, delivering an earnings surprise of 9.6%, on average.
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Factors Likely to Influence AB InBev's (BUD) Q2 Earnings
Anheuser-Busch InBev SA/NV (BUD - Free Report) , also known as AB InBev, is slated to release second-quarter 2023 earnings on Aug 3. The leading alcohol beverage company is likely to register year-over-year revenue growth when it reports second-quarter 2023 results.
The Zacks Consensus Estimate for AB InBev’s second-quarter revenues is pegged at $15.4 billion, suggesting 3.9% growth from the year-ago quarter’s reported number. For second-quarter earnings, the consensus mark is pegged at 68 cents per share, suggesting a 9.3% decline from the prior-year reported figure. The consensus estimate has moved down by a couple of cents in the past 30 days.
In the last reported quarter, the company delivered an earnings surprise of 1.6%. Its earnings beat the Zacks Consensus Estimate by 11.1%, on average, in the trailing four quarters.
Anheuser-Busch InBev SA/NV Price and EPS Surprise
Anheuser-Busch InBev SA/NV price-eps-surprise | Anheuser-Busch InBev SA/NV Quote
Key Factors to Note
AB InBev’s top line has been reflecting continued business momentum due to relentless execution, investment in its brands and accelerated digital transformation. The company has been benefiting from its unique commercial strategy, a strong brand portfolio and investments in operation excellence. These have been aiding market share growth across most key markets. Continued resilience in the global beer category is also expected to have aided the second-quarter performance.
BUD has been steadfastly growing its Beyond Beer portfolio, including ready-to-drink beverages like canned wine and canned cocktails, hard seltzers, cider and flavored malt beverages. The Beyond Beer trend has recently been gaining popularity due to the rise in demand for low-alcoholic or non-alcoholic drinks. The company has been focused on expanding its Beyond Beer portfolio, which has also been aiding the top line.
AB InBev is anticipated to have benefited from continued premiumization efforts and favorable industry trends in the second quarter. The company has been investing in a diverse portfolio of global, international, and crafts and specialty premium brands in its markets. Apart from the premium brands, BUD’s global brands lead the way in premiumization. These factors are likely to have boosted the company’s top line in the second quarter.
The rapid expansion of its digital platform and leveraging technology, such as B2B sales and other e-commerce platforms, have been the key drivers for BUD. The company has been witnessing an acceleration in the B2B platforms, e-commerce and digital marketing trends, aiding growth for the past few months. These are expected to have contributed significantly to the top and bottom lines in the to-be-reported quarter.
BUD’s revenue-management initiatives and premiumization efforts are likely to have aided revenues per hl in the second quarter. Growth in the premium portfolio and the expansion of the Beyond Beer portfolio are expected to have driven volume gains in the to-be-reported quarter.
However, AB InBev’s bottom line is expected to have been marred by adverse currency translations, commodity cost inflation and higher supply-chain costs in some markets. Higher commodity costs have been mainly resulting from increased aluminum and barley prices. BUD’s presence across various countries exposes it to negative currency translations.
On the last reported quarter’s earnings call, management expected higher commodity costs to keep exerting pressure on input costs. The company also anticipated volatile foreign currency.
Higher costs of sales and SG&A expenses are likely to have weighed on the company’s gross and operating margins. Elevated supply-chain costs have been primarily driving higher SG&A expenses for the past few quarters.
Our model predicts the cost of products sold, as a percentage of sales, to expand 20 bps year over year to 46.1% in the second quarter. A higher cost of products sold rate due to elevated input costs is likely to have led to a soft gross margin in the quarter. We estimate the gross margin to contract 20 bps to 53.9% in the to-be-reported quarter. We anticipate normalized EBIT to decline 80 bps to 25% in the second quarter.
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 -3.21%.
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.
Molson Coors (TAP - Free Report) has an Earnings ESP of +6.15% and sports a Zacks Rank of 1 at present. The Zacks Consensus Estimate for its quarterly revenues is pegged at $3.29 billion, which suggests growth of 12.6% from the figure reported in the prior-year quarter.
You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Molson Coors’ quarterly earnings has moved up 2.5% in the past seven days to $1.59 per share, suggesting growth of 33.6% from the year-ago quarter’s reported number. TAP’s earnings beat the consensus estimate in the trailing four quarters, delivering an earnings surprise of 32.1%, on average.
e.l.f. Beauty, Inc. (ELF - Free Report) has an Earnings ESP of +1.02% and flaunts a Zacks Rank #1 at present. The Zacks Consensus Estimate for its first-quarter fiscal 2024 revenues is pegged at $184.9 million, which suggests growth of 50.8% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for e.l.f. Beauty’s quarterly earnings has been unchanged in the past 30 days at 58 cents per share, suggesting growth of 48.7% from the year-ago quarter’s reported number. ELF’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, delivering an earnings surprise of 103.3%, on average.
Kellogg's (K - Free Report) has an Earnings ESP of +1.92% and a Zacks Rank of 3 at present. The Zacks Consensus Estimate for its second-quarter 2023 revenues is pegged at $4.6 billion, which suggests growth of 4.7% from the figure reported in the prior-year quarter.
The consensus estimate for Kellogg's quarterly earnings has been unchanged in the past 30 days at $1.11 per share, suggesting a decline of 5.9% from the year-ago quarter’s reported number. K’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, delivering an earnings surprise of 9.6%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.