Categories Earnings, Other Industries, Retail
Weakness in beer sales creeps into Anheuser Busch InBev Q3 earnings, stock tanks
Hurt by weakness in beer sales in China and the US, brewing giant Anheuser Busch InBev (NYSE:BUD) aka AB InBev reported third-quarter revenues and earnings that missed Wall Street expectations. BUD shares tanked 8.5% during pre-market hours on Friday.
BUD shares have increased 38% in the year-to-date period.
The Belgian firm reported a modest 2.7% growth in revenues to $13.17 billion, which fell short of the street consensus of $13.82 billion. Adjusted net income of $1.22 per share was, meanwhile, 9 cents short of the analysts’ target.
There has been a change in consumer preferences towards healthier drinks, primarily in the US, hurting sales of soda and beer. The world’s largest brewer was forced to buy up numerous craft brewers over the past few years to maintain its market position in the beer industry.
READ: Coca-Cola beats Q3 revenue expectations; EPS comes in line
The downbeat results and possibility of prolonged weakness has forced the company to step down its expectation for the full year. The parent of Budweiser and Corona beer now sees “moderate” EBITDA growth in FY19, compared to earlier projection of “strong” growth.
“Price increases implemented in South Korea and Brazil drove volume declines, which were exacerbated by softer consumer demand in light of difficult macroeconomic conditions,” the company said in a statement.
Earlier this month, rival firm Constellation Brands (NYSE: STZ) reported mixed quarterly results. The stock, however, fell as the company incurred a bigger loss from investments in cannabis firm Canopy Growth Corporation (GCG).
Get access to timely and accurate verbatim transcripts that are published within hours of the event.
Most Popular
QCOM Earnings: Qualcomm Q2 2024 revenue and profit beat Street view
Semiconductor company Qualcomm, Inc. (NASDAQ: QCOM) reported an increase in earnings and revenues for the second quarter of 2024. The numbers came in above analysts' estimates. At $9.39 billion, March-quarter
Key takeaways from Amazon’s Q1 2024 earnings report
Amazon.com Inc. (NASDAQ: AMZN) had an upbeat start to fiscal 2024, delivering strong growth across the business in the first three months of the year. While the cloud segment continues
Key takeaways from Pfizer’s (PFE) Q1 2024 earnings report
Shares of Pfizer Inc. (NYSE: PFE) gained over 5% on Wednesday following the company’s announcement of its first quarter 2024 earnings results. Although the top and bottom line numbers decreased