AB InBev Q2 Earnings Around the Corner: Will It Surpass Estimates?

Core Viewpoint - Anheuser-Busch InBev SA/NV (AB InBev) is expected to report year-over-year earnings growth for Q2 2025, despite a slight decline in revenues compared to the previous year [1][2]. Revenue and Earnings Estimates - The Zacks Consensus Estimate for AB InBev's quarterly revenues is $15.3 billion, reflecting a 0.01% decline from the same quarter last year [2]. - The consensus estimate for earnings per share (EPS) is 94 cents, indicating a 4.4% increase year-over-year [2][9]. - The earnings estimate has decreased by 2.1% over the past 30 days [2]. Recent Performance - In the last reported quarter, AB InBev's EPS exceeded the Zacks Consensus Estimate by 5.2%, with a trailing four-quarter average earnings surprise of 10.9% [3]. Factors Influencing Q2 Results - The company's results are anticipated to benefit from strategic measures such as pricing actions, premiumization, and revenue management initiatives [4]. - Strong consumer demand for AB InBev's brand portfolio is expected to contribute positively to sales performance [4]. - The focus on premium beer offerings aligns with consumer preferences, and the expansion of the Beyond Beer portfolio is also expected to aid performance [5]. Cost and Economic Challenges - Elevated costs from commodity inflation, supply-chain expenses, and investments for long-term growth are anticipated to impact results negatively [6]. - A challenging macroeconomic environment, particularly weak consumer demand in China and Argentina, poses additional concerns [6]. - Currency and interest rate fluctuations are likely to have further affected quarterly performance [6]. Earnings Prediction - The model predicts an earnings beat for AB InBev, supported by a positive Earnings ESP of +0.37% and a Zacks Rank of 3 [7]. Valuation and Stock Performance - AB InBev's forward 12-month price-to-earnings ratio stands at 16.46X, compared to a five-year high of 23.71X and the industry average of 15.05X [8]. - Year-to-date, AB InBev shares have increased by 33.6%, significantly outperforming the industry's growth of 1.5% [11].