AB InBev Q1 Earnings Coming Up: Should Investors Buy, Hold or Sell?

Anheuser-Busch InBev SA/NV BUD, also known as AB InBev, is slated to release first-quarter 2025 earnings on May 8, before the opening bell. The leading alcohol beverage company is likely to register year-over-year earnings growth when it reports quarterly numbers.The Zacks Consensus Estimate for AB InBev’s quarterly revenues is pegged at $13.9 billion, indicating a 4.8% decline from the year-ago quarter’s reported number. For first-quarter earnings, the consensus mark is pegged at 77 cents per share, indicating a 2.7% increase from the prior-year figure. The consensus estimate for earnings has been stable in the past 30 days. (See the Zacks Earnings Calendar to stay ahead of market-making news.)In the last reported quarter, the company’s earnings per share beat the Zacks Consensus Estimate by 22.2%. It has a trailing four-quarter average earnings surprise of 11.7%.Anheuser-Busch InBev SA/NV Price and EPS Surprise Anheuser-Busch InBev SA/NV price-eps-surprise | Anheuser-Busch InBev SA/NV QuoteFactors Likely to Impact BUD’s Q1 ResultsAB InBev’s results are expected to reflect its robust strategic measures, including pricing actions, continued premiumization and other revenue-management initiatives. The company is also expected to have benefited from strong consumer demand for its brand portfolio. BUD’s relentless execution, investment in brands and accelerated digital transformation have been driving its top-line momentum for a while. These factors are expected to have bolstered sales performance in the to-be-reported quarter.AB InBev’s premiumization efforts bode well. The company has been focused on premium beer offerings, aligning with consumer preferences in the alcohol industry. It continues to build a diverse portfolio of global, international, craft and specialty premium brands, with its global brands leading the premiumization trend. The expansion of the Beyond Beer portfolio and investments in B2B platforms, e-commerce and digital marketing bode well. Such efforts are expected to have aided the company’s performance in first-quarter 2025.However, the company is expected to have witnessed elevated costs from commodity cost inflation and higher supply-chain costs, and investments to support long-term growth. In addition, a tough macroeconomic environment, including a soft consumer backdrop in China and Argentina, is a concern. Currency and interest rate fluctuations are likely to have been other deterrents. Such limitations are likely to weigh on BUD’s upcoming quarterly results.Earnings Whispers for BUD StockOur proven model does not conclusively predict an earnings beat for AB InBev this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here. You can uncover the best stocks before they are reported with our Earnings ESP Filter.AB InBev has an Earnings ESP of -1.91% and a Zacks Rank of 3.BUD’s Valuation Picture & Stock PerformanceThe stock has a forward 12-month price-to-earnings ratio of 16.83X compared with the five-year high of 25.58X and the Beverages - Alcohol industry’s average of 16.26X.Image Source: Zacks Investment ResearchThe recent market movements show that BUD shares have rallied 29.8% in the year-to-date period compared with the industry's 7.5% growth.Image Source: Zacks Investment ResearchStocks Poised to Beat Earnings EstimatesHere are some companies, which according to our model, have the correct combination to beat on earnings this time around.Primo Brands Corporation PRMB currently has an Earnings ESP of +6.12% and a Zacks Rank of 2. PRMB is anticipated to register a growth in its top and bottom lines when it reports first-quarter 2025 results. The Zacks Consensus Estimate for Primo Brands’ quarterly revenues is pegged at $1.6 billion, indicating growth of 259.6% from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.The consensus estimate for Primo Brands’ bottom line has moved up 8.7% in the past 30 days to 25 cents per share. This implies growth of 31.6% from the year-ago quarter’s figure. PRMB delivered earnings beat of 7.2%, on average, in the trailing four quarters.Molson Coors TAP currently has an Earnings ESP of +4.01% and a Zacks Rank of 3. The company is likely to register a decrease in the top and bottom lines when it reports first-quarter 2025 numbers. The Zacks Consensus Estimate for quarterly earnings per share is pegged at 80 cents, down 15.8% from the year-ago period. The consensus mark has moved down by a penny in the past seven days.The consensus estimate for Molson Coors’ quarterly revenues is pegged at $2.4 billion, which indicates a decrease of 6% from the prior-year quarter. TAP has a trailing four-quarter earnings surprise of 18.1%, on average.Celsius CELH has an Earnings ESP of +2.91% and a Zacks Rank of 3 at present. CELH is likely to register top and bottom-line decline when it releases first-quarter 2025 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $341.7 million, which implies a dip of 4% from the figure in the prior-year quarter.The consensus estimate for Celsius’ bottom line has moved up a penny to 20 cents per share in the past 30 days. The estimate indicates a 25.9% decline from the year-ago quarter. CELH delivered a negative earnings surprise of 4%, on average, in the trailing four quarters.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Molson Coors Beverage Company (TAP): Free Stock Analysis Report Anheuser-Busch InBev SA/NV (BUD): Free Stock Analysis Report Celsius Holdings Inc. (CELH): Free Stock Analysis Report Primo Brands Corporation (PRMB): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks