Anheuser-Busch's Watered-Down Results: Fool by Numbers (BUD)

Anheuser-Busch's Watered-Down Results: Fool by Numbers

By Motley Fool Contributors | More Articles
April 26, 2007 | Comments (0)

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*
35.9%	35.6%	0.2
18.6%	19.2%	(0.6)
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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