Back to top

Image: Bigstock

Here's How AB InBev (BUD) is Placed Just Before Q1 Earnings

Read MoreHide Full Article

Anheuser-Busch InBev SA/NV (BUD - Free Report) , also known as AB InBev, is slated to release first-quarter 2024 earnings on May 8. The leading alcohol beverage company is likely to register year-over-year revenue and earnings growth when it reports first-quarter 2024 results.

The Zacks Consensus Estimate for AB InBev’s first-quarter revenues is pegged at $14.4 billion, suggesting 1.4% growth from the year-ago quarter’s reported number. For first-quarter earnings, the consensus mark is pegged at 72 cents per share, suggesting 10.8% growth from the prior-year reported figure. The consensus estimate has moved down 5.3% in the past 30 days.

In the last reported quarter, the company’s earnings per share beat the Zacks Consensus Estimate by 7.9%. It has a positive earnings surprise of 4.6%, on average, in the trailing four quarters.

Anheuser-Busch InBev SA/NV Price and EPS Surprise

 

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 a continued business momentum for its brand portfolio. The company’s pricing actions, ongoing premiumization and other revenue management initiatives have also been aiding its revenues. Relentless execution, investment in its brands and accelerated digital transformation have been boosting market share growth across most key markets. Continued resilience in the global beer category is also expected to have aided the first-quarter performance.

On the last reported quarter’s earnings call, management predicted the positive business trends to continue throughout 2024. We estimate 0.9% revenue growth for first-quarter 2024. Our model estimates revenue per hl to increase 1.6% year over year, with a volume decline of 0.7%.

AB InBev is anticipated to have benefited from continued premiumization efforts and favorable industry trends in the first quarter. The company has been focused on offering premium beer variants, keeping on track with the consumer premiumization trend in the alcohol industry. It has been investing to develop 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 first 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 accelerations in 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.

AB InBev 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 increased 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.

The company’s revenue-management initiatives and premiumization efforts are likely to have aided revenues per hl in the first 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 first-quarter results are expected to reflect the continued impacts of elevated costs stemming from commodity cost inflation and investments to support long-term growth. These are expected to have weighed on the company’s EBITDA margin in the to-be-reported quarter.

Zacks Model

Our proven model does not 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 is not the case here. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

AB InBev has a Zacks Rank #3 and an Earnings ESP of -5.92%.

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.

Celsius (CELH - Free Report) has an Earnings ESP of +9.45% and a Zacks Rank of 2 at present. The company is slated to witness top and bottom-line growth when it reports first-quarter 2024 results. The Zacks Consensus Estimate for CELH’s quarterly revenues is pegged at $389.6 million, which suggests growth of 49.9% from the figure reported in the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Celsius’ quarterly earnings has been unchanged in the past 30 days to 20 cents per share. The consensus mark for earnings indicates growth of 53.9% from the year-ago quarter’s reported number. CELH has delivered an earnings surprise of 67.4%, on average, in the trailing four quarters.

Hershey (HSY - Free Report) has an Earnings ESP of +0.87% and a Zacks Rank of 3 at present. The company is expected to register top-line growth when it reports first-quarter 2024 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $3.1 billion, which suggests growth of 4.6% from the figure reported in the year-ago quarter.

The Zacks Consensus Estimate for Hershey’s quarterly earnings has moved up by a penny in the past seven days at $2.74 per share. The consensus mark for earnings suggests a decline of 7.4% from the year-ago quarter’s reported number. HSY has delivered an earnings surprise of 6.5%, on average, in the trailing four quarters.

Coty (COTY - Free Report) has an Earnings ESP of +4.23% and a Zacks Rank of 3 at present. The company is expected to witness top-line growth when it reports first-quarter 2024 results. The Zacks Consensus Estimate for COTY’s quarterly earnings has been unchanged in the past 30 days at 6 cents per share. The consensus mark for earnings implies a 68.4% decline from that reported in the year-ago quarter.

The Zacks Consensus Estimate for Coty’s quarterly revenues is pegged at $1.4 billion, which indicates growth of 6.6% from the figure reported in the year-ago quarter. COTY has delivered an earnings surprise of 115.3%, on average, in the trailing four quarters.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Published in