Categories Earnings, Retail

Budweiser, Corona to drive Anheuser Busch InBev Q3 earnings

Brewing giant Anheuser Busch InBev (NYSE:BUD) will report third-quarter financial results before the market hours on Friday, October 25. Analysts expect the Budweiser-parent to report a year-over-year increase in earnings and revenues in Q3.

Even as overall beer demand remains soft, popular brands such as Budweiser and Corona continue to see strength. Also, strength in the international markets is likely to offset any weakness in US sales. During the third quarter, total revenue is projected to increase 4% to $13.82 billion.

CREDIT: Blake Guidry/Unsplash

There has been a change in consumer preferences towards healthier drinks, primarily in the US, hurting sales of soda and beer. Anheuser Busch was forced to buy up numerous craft brewers over the past few years to maintain its market position in the beer industry.

Down the line, the Belgian firm is expected to report earnings of $1.16 per share, compared to 82 cents per share a year ago. In the trailing four quarters, Anheuser Busch has exceed market consensus on earnings on two occasions.

READ: McDonald’s misses Q3 earnings target by 10 cents

During the last-reported quarter, the company reported better-than-expected revenues and income, sending the stock higher.

Meanwhile, better revenues and income may not, in itself, satiate the thirst of investors. The market will also be looking at the brewer’s balance sheet, which is not among its strong points. Post the SAB Miller acquisition last year, the company had incurred significant debts, which later forced it to slash its dividends. Investors will need more clarity on the advantages of holding on to a stock with unstable dividends.

BUD shares have increased 38% in the year-to-date period. It’s 12-month average price target of $103.67 is at a 13% upside from Wednesday’s trading price.

Get access to timely and accurate verbatim transcripts that are published within hours of the event.

Most Popular

Cost reduction has become a priority for FedEx (FDX) after a challenging quarter

Shares of FedEx Corporation (NYSE: FDX) were up 1% on Tuesday. The stock has dropped 44% year-to-date and 34% over the past 12 months. The company delivered mixed results for

Prime Medicine is the next big biotech to pursue IPO. Here’s all you need to know

After a soft start to the year, the IPO market has witnessed muted activity so far though a few big companies entered the stock market. On the heels of AIG

Stock Watch: Is Darden Restaurants a good buy after earnings?

After a prolonged slowdown, the restaurant industry is returning to normal patterns but macroeconomic uncertainties and high inflation are currently playing spoilsport for it. While the pandemic-related slump forced many

Tags

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top