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Anheuser-Busch InBev SA/NV BUD, also known as AB InBev, is slated to release fourth-quarter 2024 earnings on Feb. 26, before the opening bell. The leading alcohol beverage company is likely to register year-over-year revenue and earnings declines when it reports quarterly numbers.
The Zacks Consensus Estimate for AB InBev’s quarterly revenues is pegged at $14.4 billion, indicating a 0.2% drop from the year-ago quarter’s reported number. For fourth-quarter earnings, the consensus mark is pegged at 72 cents per share, indicating a 12.2% decrease from the prior-year figure. The consensus estimate has been stable in the past 30 days.
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In the last reported quarter, the company’s earnings per share beat the Zacks Consensus Estimate by 8.9%. It has a trailing four-quarter average earnings surprise of 8.2%.
Factors Likely to Impact BUD’s Q4 Results
AB InBev’s fourth-quarter 2024 results are likely to reflect the impacts of challenging macroeconomic conditions, including a soft consumer backdrop in China and Argentina. Currency and interest rate fluctuations are likely to have been other deterrents. Such limitations are likely to weigh on BUD’s upcoming quarterly results.
In addition, commodity cost inflation and increased supply-chain expenses are expected to have led to higher costs. Rising selling, general & administrative (SG&A) expenses, owing to increased business investments and higher operating costs, are likely to have remained concerns. Such elevated expenses are expected to have pressured AB InBev’s margins and profits. We expect the cost of sales to rise 5.7% year over year and SG&A costs to increase 8.9% for the fourth quarter.
On the flip side, AB InBev’s premiumization efforts bode well. The company has been focused on premium beer offerings, aligning with consumer preferences in the alcohol industry. It continues to build a diverse portfolio of global, international, craft and specialty premium brands, with its global brands leading the premiumization trend. The expansion of the Beyond Beer portfolio and investments in B2B platforms, e-commerce and digital marketing bode well. Such efforts are likely to have offered some cushion to the company’s performance.
Anheuser-Busch InBev SA/NV Price and EPS Surprise
Anheuser-Busch InBev SA/NV price-eps-surprise | Anheuser-Busch InBev SA/NV Quote
Earnings Whispers for BUD Stock
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 before they are reported with our Earnings ESP Filter.
AB InBev has a Zacks Rank #4 (Sell) and an Earnings ESP of +7.74%.