The 10-second takeaway
For the quarter ended March 31 (Q1), Anheuser-Busch InBev missed estimates on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped slightly. Non-GAAP earnings per share increased. GAAP earnings per share grew significantly.
Gross margins dropped, operating margins dropped, net margins grew.
Anheuser-Busch InBev chalked up revenue of $9.17 billion. The nine analysts polled by S&P Capital IQ expected a top line of $9.49 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 came in at $1.16. The two earnings estimates compiled by S&P Capital IQ predicted $0.89 per share. Non-GAAP EPS of $1.16 for Q1 were 10% higher than the prior-year quarter's $1.05 per share. GAAP EPS of $1.28 for Q1 were 21% higher than the prior-year quarter's $1.06 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 57.4%, 130 basis points worse than the prior-year quarter. Operating margin was 30.0%, 90 basis points worse than the prior-year quarter. Net margin was 22.4%, 430 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $10.30 billion. On the bottom line, the average EPS estimate is $1.13.
Next year's average estimate for revenue is $45.48 billion. The average EPS estimate is $4.86.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 276 members out of 300 rating the stock outperform, and 24 members rating it underperform. Among 80 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 75 give Anheuser-Busch InBev a green thumbs-up, and five 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 $104.94.
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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.