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Can AB InBev (BUD) Deliver Q2 Earnings Beat Despite High Costs?
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Anheuser-Busch InBev SA/NV (BUD - Free Report) , also known as AB InBev, is slated to release second-quarter 2024 earnings on Aug 1. The leading alcohol beverage company is likely to register year-over-year revenue and earnings growth when it reports second-quarter 2024 results.
The Zacks Consensus Estimate for AB InBev’s second-quarter revenues is pegged at $15.2 billion, suggesting 0.6% growth from the year-ago quarter’s reported number. For second-quarter earnings, the consensus mark is pegged at 84 cents per share, indicating a 16.7% growth from the prior-year reported figure. The consensus estimate has moved down by a penny in the past 30 days.
In the last reported quarter, the company’s earnings per share beat the Zacks Consensus Estimate by 8.7%. It has a positive earnings surprise of 6.4%, on average, in the trailing four quarters.
AB InBev’s top line has been gaining from consumer demand for its brand portfolio. The company’s pricing actions, ongoing premiumization and other revenue management initiatives have been aiding its revenues. Relentless execution, investment in its brands and accelerated digital transformation have been boosting market share growth across most key markets. Continued resilience in the global beer category is also expected to have aided BUD’s performance in the second quarter.
On the last reported quarter’s earnings call, management predicted the positive business trends to continue throughout 2024. We estimate 1.7% revenue growth for second-quarter 2024. Our model estimates revenue per hl to increase 2.8% year over year, with a volume decline of 1.1% in the second quarter.
AB InBev is anticipated to have benefited from continued premiumization efforts and favorable industry trends in the second quarter. The company has been focused on offering premium beer variants, keeping on track with the consumer premiumization trend in the alcohol industry. It has been investing to develop a diverse portfolio of global, international, and crafts and specialty premium brands in its markets. Additionally, BUD’s global brands lead the way in premiumization. Momentum in premium and global brands is likely to have boosted the company’s top line in the second 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 accelerations in 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.
AB InBev has been steadfastly expanding its Beyond Beer portfolio, including ready-to-drink beverages like canned wine and cocktails, hard seltzers, ciders, and flavored malt beverages. The Beyond Beer trend has recently been gaining popularity due to the increased 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.
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 second-quarter results are expected to reflect the continued impacts of elevated costs stemming from commodity cost inflation and higher supply-chain costs in some markets. These are expected to have led to elevated costs of goods sold in the to-be-reported quarter.
Additionally, the company has been witnessing higher SG&A expenses due to increased investments in business and elevated operating costs. The elevated COGS and SG&A expenses are collectively expected to have hurt the company’s EBITDA margin in the to-be-reported quarter.
Zacks Model
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 to buy or sell before they are reported with our Earnings ESP Filter.
AB InBev has a Zacks Rank #4 (Sell) and an Earnings ESP of +0.32%.
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.
Dutch Bros (BROS - Free Report) has an Earnings ESP of +11.37% and a Zacks Rank of 2 at present. The company is slated to witness top-line growth when it reports second-quarter 2024 results. The Zacks Consensus Estimate for BROS’s quarterly revenues is pegged at $316.8 million, which suggests growth of 26.8% from the figure reported in the year-ago quarter.
The Zacks Consensus Estimate for Dutch Bros’ quarterly earnings has moved up by a penny in the past 30 days to 13 cents per share. The consensus mark for earnings indicates no change from the year-ago quarter’s reported number. BROS has delivered an earnings surprise of 158.9%, on average, in the trailing four quarters.
Clorox (CLX - Free Report) has an Earnings ESP of +1.20% and a Zacks Rank of 3 at present. The company is expected to register top and bottom-line decline when it reports second-quarter 2024 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $1.97 billion, which suggests a decline of 2.4% from the figure reported in the year-ago quarter.
The Zacks Consensus Estimate for Clorox’s quarterly earnings has moved up by a penny in the past 30 days at $1.54 per share. The consensus mark for earnings suggests a decline of 7.8% from the year-ago quarter’s reported number. CLX has delivered an earnings surprise of 128.5%, on average, in the trailing four quarters.
Church & Dwight Co., Inc. (CHD - Free Report) currently has an Earnings ESP of +2.60% and a Zacks Rank #3. CHD is anticipated to register top-line growth when it reports second-quarter 2024 results. The Zacks Consensus Estimate for Church & Dwight’s quarterly revenues is pegged at $1.5 billion, indicating an increase of 3.8% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Church & Dwight’s bottom line has been unchanged in the past 30 days at 84 cents per share. The consensus estimate for earnings per share suggests a decline of 8.7% from the prior-year quarter’s reported figure. CHD has delivered an earnings beat of 9.6%, on average, in the trailing four quarters.
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Can AB InBev (BUD) Deliver Q2 Earnings Beat Despite High Costs?
Anheuser-Busch InBev SA/NV (BUD - Free Report) , also known as AB InBev, is slated to release second-quarter 2024 earnings on Aug 1. The leading alcohol beverage company is likely to register year-over-year revenue and earnings growth when it reports second-quarter 2024 results.
The Zacks Consensus Estimate for AB InBev’s second-quarter revenues is pegged at $15.2 billion, suggesting 0.6% growth from the year-ago quarter’s reported number. For second-quarter earnings, the consensus mark is pegged at 84 cents per share, indicating a 16.7% growth from the prior-year reported figure. The consensus estimate has moved down by a penny in the past 30 days.
In the last reported quarter, the company’s earnings per share beat the Zacks Consensus Estimate by 8.7%. It has a positive earnings surprise of 6.4%, on average, in the trailing four quarters.
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 gaining from consumer demand for its brand portfolio. The company’s pricing actions, ongoing premiumization and other revenue management initiatives have been aiding its revenues. Relentless execution, investment in its brands and accelerated digital transformation have been boosting market share growth across most key markets. Continued resilience in the global beer category is also expected to have aided BUD’s performance in the second quarter.
On the last reported quarter’s earnings call, management predicted the positive business trends to continue throughout 2024. We estimate 1.7% revenue growth for second-quarter 2024. Our model estimates revenue per hl to increase 2.8% year over year, with a volume decline of 1.1% in the second quarter.
AB InBev is anticipated to have benefited from continued premiumization efforts and favorable industry trends in the second quarter. The company has been focused on offering premium beer variants, keeping on track with the consumer premiumization trend in the alcohol industry. It has been investing to develop a diverse portfolio of global, international, and crafts and specialty premium brands in its markets. Additionally, BUD’s global brands lead the way in premiumization. Momentum in premium and global brands is likely to have boosted the company’s top line in the second 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 accelerations in 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.
AB InBev has been steadfastly expanding its Beyond Beer portfolio, including ready-to-drink beverages like canned wine and cocktails, hard seltzers, ciders, and flavored malt beverages. The Beyond Beer trend has recently been gaining popularity due to the increased 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.
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 second-quarter results are expected to reflect the continued impacts of elevated costs stemming from commodity cost inflation and higher supply-chain costs in some markets. These are expected to have led to elevated costs of goods sold in the to-be-reported quarter.
Additionally, the company has been witnessing higher SG&A expenses due to increased investments in business and elevated operating costs. The elevated COGS and SG&A expenses are collectively expected to have hurt the company’s EBITDA margin in the to-be-reported quarter.
Zacks Model
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 to buy or sell before they are reported with our Earnings ESP Filter.
AB InBev has a Zacks Rank #4 (Sell) and an Earnings ESP of +0.32%.
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.
Dutch Bros (BROS - Free Report) has an Earnings ESP of +11.37% and a Zacks Rank of 2 at present. The company is slated to witness top-line growth when it reports second-quarter 2024 results. The Zacks Consensus Estimate for BROS’s quarterly revenues is pegged at $316.8 million, which suggests growth of 26.8% from the figure reported in the year-ago quarter.
You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Dutch Bros’ quarterly earnings has moved up by a penny in the past 30 days to 13 cents per share. The consensus mark for earnings indicates no change from the year-ago quarter’s reported number. BROS has delivered an earnings surprise of 158.9%, on average, in the trailing four quarters.
Clorox (CLX - Free Report) has an Earnings ESP of +1.20% and a Zacks Rank of 3 at present. The company is expected to register top and bottom-line decline when it reports second-quarter 2024 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $1.97 billion, which suggests a decline of 2.4% from the figure reported in the year-ago quarter.
The Zacks Consensus Estimate for Clorox’s quarterly earnings has moved up by a penny in the past 30 days at $1.54 per share. The consensus mark for earnings suggests a decline of 7.8% from the year-ago quarter’s reported number. CLX has delivered an earnings surprise of 128.5%, on average, in the trailing four quarters.
Church & Dwight Co., Inc. (CHD - Free Report) currently has an Earnings ESP of +2.60% and a Zacks Rank #3. CHD is anticipated to register top-line growth when it reports second-quarter 2024 results. The Zacks Consensus Estimate for Church & Dwight’s quarterly revenues is pegged at $1.5 billion, indicating an increase of 3.8% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Church & Dwight’s bottom line has been unchanged in the past 30 days at 84 cents per share. The consensus estimate for earnings per share suggests a decline of 8.7% from the prior-year quarter’s reported figure. CHD has delivered an earnings beat of 9.6%, on average, in the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.