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AB InBev (BUD) to Report Q1 Earnings: What's on the Cards?

Anheuser-Busch InBev SA/NV BUD, also known as AB InBev, is slated to release first-quarter 2023 earnings on May 4. The leading alcohol beverage company is likely to register year-over-year revenue growth when it reports first-quarter 2023 results.

The Zacks Consensus Estimate for AB InBev’s first-quarter revenues is pegged at $13.96 billion, suggesting 5.5% growth from the year-ago quarter’s reported number. For first-quarter earnings, the consensus mark is pegged at 64 cents per share, suggesting a 4.5% decline from the prior-year reported figure. The consensus estimate has moved down 4.5% in the past 30 days.

We expect the company’s first-quarter total revenues to increase 4.7% year over year to $13,861.2 million and the bottom line to improve 0.4% to 61 cents per share.

In the last reported quarter, the company delivered an earnings surprise of 36.1%. Its earnings beat the Zacks Consensus Estimate by 13.6%, 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 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, owing 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 first-quarter performance.

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 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.

The company is anticipated to have benefited from continued premiumization efforts and favorable industry trends in the first quarter. It 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 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 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 fourth 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 continue 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.

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 -2.34%.

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.

Nu Skin Enterprises NUS has an Earnings ESP of +4.08% and currently carries a Zacks Rank of 2. The company is likely to register top and bottom-line declines when it reports first-quarter 2023 results. The consensus mark for NUS’ quarterly revenues is pegged at $477.1 million, which suggests a 21.1% decline from the figure reported in the prior-year quarter.

You can see the complete list of today’s Zacks #1 Rank stocks here.

The consensus mark for Nu Skin’s quarterly earnings has been unchanged in the past 30 days at 33 cents per share. The consensus estimate for NUS’ first-quarter earnings suggests a decline of 56.6% from the year-ago quarter’s reported figure. NUS has delivered an earnings beat of 7.4%, on average, in the trailing four quarters.

Post Holdings POST currently has an Earnings ESP of +2.94% and a Zacks Rank #2. POST is likely to register top and bottom-line growth when it reports the second-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for its quarterly revenues is pegged at $1.6 billion, which suggests growth of 10.5% from the figure reported in the prior-year quarter.

The Zacks Consensus Estimate for Post Holdings’ quarterly earnings has moved up by a penny in the past seven days to 30 cents per share, suggesting growth of 183.3% from the year-ago quarter’s reported number. POST has delivered an earnings beat of 34.8%, on average, in the trailing four quarters.

The Estee Lauder Companies EL currently has an Earnings ESP of +3.26% and a Zacks Rank of 3. The company is expected to register top and bottom-line declines when it reports the third-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for EL’s quarterly revenues is pegged at $3.72 billion, which suggests a decline of 12.5% from the prior-year quarter’s reported figure.

The Zacks Consensus Estimate for Estee Lauder’s quarterly earnings has been unchanged in the past 30 days at 49 cents per share. The consensus estimate for EL’s earnings suggests a decline of 74.2% from the year-ago quarter. EL has delivered an earnings beat of 17.8%, on average, in the trailing four quarters.

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

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