Anheuser-Busch InBev Meets on the Top Line, Misses Where it Counts

Anheuser-Busch InBev (NYS: BUD) reported earnings on Feb. 27. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Anheuser-Busch InBev met expectations on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue expanded. Non-GAAP earnings per share shrank. GAAP earnings per share contracted.


Gross margins expanded, operating margins grew, net margins shrank.

Revenue details
Anheuser-Busch InBev reported revenue of $10.29 billion. The nine analysts polled by S&P Capital IQ wanted to see a top line of $10.22 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $1.12. The three earnings estimates compiled by S&P Capital IQ forecast $1.20 per share. Non-GAAP EPS of $1.12 for Q4 were 8.9% lower than the prior-year quarter's $1.23 per share. GAAP EPS of $1.02 for Q4 were 12% lower than the prior-year quarter's $1.16 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 60.1%, 80 basis points better than the prior-year quarter. Operating margin was 35.7%, 100 basis points better than the prior-year quarter. Net margin was 17.1%, 160 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $9.72 billion. On the bottom line, the average EPS estimate is $0.97.

Next year's average estimate for revenue is $45.70 billion. The average EPS estimate is $4.91.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 273 members out of 297 rating the stock outperform, and 24 members rating it underperform. Among 77 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 73 give Anheuser-Busch InBev a green thumbs-up, and four give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Anheuser-Busch InBev is outperform, with an average price target of $93.93.

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The article Anheuser-Busch InBev Meets on the Top Line, Misses Where it Counts originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy

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