U.S. Markets close in 2 hrs 12 mins
  • S&P 500

    3,700.35
    +53.06 (+1.45%)
     
  • Dow 30

    29,571.25
    +436.26 (+1.50%)
     
  • Nasdaq

    10,968.41
    +138.91 (+1.28%)
     
  • Russell 2000

    1,708.83
    +46.32 (+2.79%)
     
  • Crude Oil

    81.54
    +3.04 (+3.87%)
     
  • Gold

    1,670.90
    +34.70 (+2.12%)
     
  • Silver

    18.92
    +0.58 (+3.18%)
     
  • EUR/USD

    0.9732
    +0.0135 (+1.4015%)
     
  • 10-Yr Bond

    3.7390
    -0.2250 (-5.68%)
     
  • Vix

    31.19
    -1.41 (-4.33%)
     
  • GBP/USD

    1.0880
    +0.0149 (+1.3861%)
     
  • USD/JPY

    144.0780
    -0.7130 (-0.4924%)
     
  • BTC-USD

    19,511.19
    +539.85 (+2.85%)
     
  • CMC Crypto 200

    444.31
    +15.53 (+3.62%)
     
  • FTSE 100

    7,005.39
    +20.80 (+0.30%)
     
  • Nikkei 225

    26,173.98
    -397.89 (-1.50%)
     

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

·5 min read

Anheuser-Busch InBev SA/NV BUD, also known as AB InBev, is slated to release first-quarter 2022 earnings on May 5. The leading alcohol beverage company is likely to register year-over-year revenue growth when it reports first-quarter 2022 results.

The Zacks Consensus Estimate for AB InBev’s first-quarter revenues is pegged at $12.96 billion, suggesting 5.5% growth from the year-ago quarter’s reported number. For first-quarter earnings, the consensus mark is pegged at 60 cents per share, suggesting a 17.7% increase from the prior-year reported figure. The consensus estimate has been unchanged in the past seven days.

In the last reported quarter, the company delivered an earnings surprise of 16.9%. Its earnings missed the Zacks Consensus Estimate by 5.19%, on average, in the trailing four quarters.

AnheuserBusch InBev SANV Price and EPS Surprise

AnheuserBusch InBev SANV Price and EPS Surprise
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 first quarter are expected to have benefited from robust organic revenue growth, driven by continued volume and revenue per hectoliter (hl) growth, and strong pricing. Continued resilience in the global beer category is also expected to have aided the first-quarter performance.

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 first quarter. The expansion of the Beyond Beer portfolio, along with investments in the B2B platforms, e-commerce and digital marketing, also bodes well.

BUD’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 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 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 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.

Corteva CTVA currently has an Earnings ESP of +0.70% and a Zacks Rank of 3. The company is likely to register increases in the top and bottom lines when it reports first-quarter 2022 results. The consensus mark for CTVA’s quarterly revenues is pegged at $4.5 billion, which suggests a rise of 8.1% from the figure reported in the prior-year quarter.

The Zacks Consensus Estimate for Corteva’s earnings has been unchanged at 81 cents per share in the past 30 days. The consensus estimate indicates a 2.5% increase from 79 cents reported in the year-ago quarter.

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

US Foods USFD currently has an Earnings ESP of +19.32% and a Zacks Rank of 3. The company is likely to register increases in the top and bottom lines when it reports first-quarter 2022 numbers. The consensus mark for USFD’s quarterly earnings has moved up 38.1% in the past 30 days to 29 cents per share. The consensus estimate suggests 141.7% growth from the year-ago quarter’s reported number.

The Zacks Consensus Estimate for US Foods’ quarterly revenues is pegged at $7.8 billion, which suggests growth of 23.9% from the figure reported in the prior-year quarter.

Hormel Foods HRL currently has an Earnings ESP of +1.29% and a Zacks Rank of 3. The company is likely to register top and bottom-line growth when it reports second-quarter fiscal 2022 results. The consensus mark for HRL’s quarterly revenues is pegged at $3 billion, which suggests 15.1% growth from the figure reported in the prior-year quarter.

The consensus mark for HRL’s quarterly earnings has moved down by a penny in the past 30 days to 46 cents per share. However, the consensus estimate suggests growth of 9.5% from the year-ago quarter.

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


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Hormel Foods Corporation (HRL) : Free Stock Analysis Report

AnheuserBusch InBev SANV (BUD) : Free Stock Analysis Report

US Foods Holding Corp. (USFD) : Free Stock Analysis Report

Corteva, Inc. (CTVA) : Free Stock Analysis Report

To read this article on Zacks.com click here.