ABInBev(US:BUD) ZACKS·2025-10-27 18:36Core Insights - Anheuser-Busch InBev is expected to report third-quarter 2025 earnings on October 30, with anticipated year-over-year revenue growth [1][10] Revenue and Earnings Estimates - The Zacks Consensus Estimate for AB InBev's quarterly revenues is $15.4 billion, reflecting a 2% increase from the previous year [2] - The consensus estimate for earnings per share is 97 cents, indicating a 1% decline from the prior year [2] - The earnings estimate has decreased by 4% over the past 30 days [2] Recent Performance - In the last reported quarter, AB InBev's earnings per share exceeded the Zacks Consensus Estimate by 4.3%, with an average earnings surprise of 10.1% over the last four quarters [3] Factors Influencing Q3 Results - The company's results are expected 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 likely to have contributed positively to sales performance [4] - The focus on premium beer offerings aligns with consumer preferences, and the expansion of the Beyond Beer portfolio is expected to support performance [5] Challenges Facing the Company - AB InBev faces significant pressure from soft volumes in key markets like China and Brazil, indicating that revenue growth is primarily driven by price/mix rather than consumption [6] - The company is experiencing volume pressures due to shifting consumer preferences and competition from non-alcoholic alternatives [6] - Elevated costs from commodity inflation and supply chain issues, along with a challenging macroeconomic environment, are anticipated to negatively impact quarterly performance [7] Valuation and Stock Performance - The stock has a forward 12-month price-to-earnings ratio of 15.05X, compared to a five-year high of 23.71X and the industry average of 14.02X [9] - Year-to-date, AB InBev shares have increased by 22.4%, contrasting with a 4.6% decline in the industry [12]