The 10-second takeaway
For the quarter ended June 30 (Q2), Anheuser-Busch InBev beat slightly on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue expanded. Non-GAAP earnings per share contracted significantly. GAAP earnings per share grew significantly.
Margins grew across the board.
Anheuser-Busch InBev booked revenue of $10.59 billion. The 16 analysts polled by S&P Capital IQ predicted a top line of $10.40 billion on the same basis. GAAP reported sales were 7.3% higher than the prior-year quarter's $9.87 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
EPS came in at $0.89. The four earnings estimates compiled by S&P Capital IQ averaged $1.03 per share. Non-GAAP EPS of $0.89 for Q2 were 27% lower than the prior-year quarter's $1.22 per share. GAAP EPS of $4.53 for Q2 were 268% higher than the prior-year quarter's $1.23 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
For the quarter, gross margin was 58.0%, 60 basis points better than the prior-year quarter. Operating margin was 30.4%, 140 basis points better than the prior-year quarter. Net margin was 70.4%, much better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $11.84 billion. On the bottom line, the average EPS estimate is $1.26.
Next year's average estimate for revenue is $44.09 billion. The average EPS estimate is $4.79.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 273 members out of 296 rating the stock outperform, and 23 members rating it underperform. Among 82 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 77 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 $106.29.
Looking for alternatives to Anheuser-Busch InBev? It takes more than great companies to build a fortune for the future. Learn the basic financial habits of millionaires next door and get focused stock ideas in our free report, "3 Stocks That Will Help You Retire Rich." Click here for instant access to this free report.
- Add Anheuser-Busch InBev to My Watchlist.
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. 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.