Anheuser-Busch's Watered-Down Results: Fool by Numbers
By Motley Fool Contributors
April 26, 2007
On April 25, beer behemoth Anheuser-Busch (NYSE: BUD) released first-quarter earnings for the period ended March 31.
- Scanning the numbers below, there's not a whole lot to get excited about. Volume was flat in the U.S., although international volume did increase 8.7%.
- EPS growth benefited from the company's ongoing share repurchase program.
-
Inside Value recommendation Anheuser-Busch has a three-star rating in Motley Fool CAPS. Boston Beer Co. (NYSE: SAM) carries the same rating.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Q1 2007
|
Q1 2006
|
Change
|
|
Sales
|
$3,858.4
|
$3,755.6
|
2.7%
|
|
Net Profit
|
$517.5
|
$499.2
|
3.7%
|
|
EPS
|
$0.67
|
$0.64
|
4.7%
|
|
Diluted Shares
|
773.3
|
780.2
|
(0.9%)
|
Get back to basics with the income statement.
Margin Checkup
|
Q1 2007
|
Q1 2006
|
Change*
|
|
Gross Margin
|
35.9%
|
35.6%
|
0.2
|
|
Operating Margin
|
18.6%
|
19.2%
|
(0.6)
|
|
Net Margin
|
13.4%
|
13.3%
|
0.1
|
*Expressed in percentage points.
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets
|
Q1 2007
|
Q1 2006
|
Change
|
|
Cash + ST Invest.
|
$274.1
|
$212.5
|
29%
|
|
Accounts Rec.
|
$949.1
|
$873.0
|
8.7%
|
|
Inventory
|
$802.7
|
$707.7
|
13.4%
|
|
Liabilities
|
Q1 2007
|
Q1 2006
|
Change
|
|
Accounts Payable
|
$1,279.6
|
$1,170.9
|
9.3%
|
|
Long-Term Debt
|
$8,276.2
|
$8,127.4
|
1.8%
|
The balance sheet reflects the company's health.
Cash Flow Highlights
|
Q1 2007
|
Q1 2006
|
Change
|
|
Cash From Ops.
|
$316
|
$447
|
(29.3%)
|
|
Capital Expenditures
|
$154.4
|
$159.1
|
(3%)
|
|
Free Cash Flow
|
$161.6
|
$287.9
|
(43.9%)
|
Free cash flow is a Fool's best friend.
Related Foolishness:
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Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean. This data has been provided by Netscribes. To provide feedback on this article, please click on the "feedback" button below.
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