On Oct. 25, Motley Fool Inside Value recommendation Anheuser-Busch (NYSE:BUD) released full-year earnings for the period ended Sept. 30, 2006.

  • Operating margins jumped 2.82 percentage points compared to third-quarter 2005 results.
  • Capital expenditures are down 41% compared to last year, boosting free cash flow by 30%.
  • Anheuser-Busch's revenue and diluted earnings per-share results exceeded analyst estimates. Under GAAP, diluted EPS increased 26.2%. If a one-time legal settlement is removed from 2005 results, diluted EPS increased 7.9%.

(Figures in millions, except per-share data)

Income Statement Highlights

Avg. Est.

Q3 2006

Q3 2005

Change

Sales

$4,240

$4,281

$4,089

4.7%

Net Profit

--

$638

$505

26.3%

EPS

$0.81

$0.82

$0.65

26.2%

Diluted Shares

--

776

781

(0.6%)



Get back to basics with a look at the income statement.

Margin Checkup

Q3 2006

Q3 2005

Change*

Gross Margin

38.22%

38.42%

(0.20)

Operating Margin

20.98%

18.16%

2.82

Net Margin

14.89%

12.35%

2.54

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q3 2006

Q3 2005

Change

Cash + ST Invest.

$191

$192

(0.4%)

Accounts Rec.

$903

$814

11.0%

Inventory

$656

$692

(5.2%)



Liabilities

Q3 2006

Q3 2005

Change

Accounts Payable

$1,315

$1,203

9.3%

Long-Term Debt

$7,393

$8,008

(7.7%)



Learn the ways of the balance sheet.

Cash Flow Highlights

YTD 2006

YTD 2005

Change

Cash From Ops.

$2,226

$2,146

3.7%

Capital Expenditures

$487

$823

(40.8%)

Free Cash Flow

$1,739

$1,323

31.4%



Find out why Fools always follow the money.

Related Companies:

  • Molson Coors Brewing Company (NYSE:TAP)
  • Boston Beer Company (NYSE:SAM)
  • Diageo (NYSE:DEO)
  • AmBev (NYSE:ABV)

Related Foolishness:

Anheuser-Busch is a Motley Fool Inside Value selection. Diageo is a Motley Fool Income Investor selection. Take the newsletter of your choice for a 30-day free trial.

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.

At the time of publication,Nathan Parmelee had no positions in any of the companies mentioned. Fool rules are here.