Anheuser-Busch InBev SA/NV BUD, also known as AB InBev, is slated to release fourth-quarter 2024 earnings on Feb. 26, before the opening bell. The leading alcohol beverage company is likely to register year-over-year revenue and earnings declines when it reports quarterly numbers.

The Zacks Consensus Estimate for AB InBev’s quarterly revenues is pegged at $14.4 billion, indicating a 0.2% drop from the year-ago quarter’s reported number. For fourth-quarter earnings, the consensus mark is pegged at 72 cents per share, indicating a 12.2% decrease from the prior-year figure. The consensus estimate has been stable in the past 30 days.

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In the last reported quarter, the company’s earnings per share beat the Zacks Consensus Estimate by 8.9%. It has a trailing four-quarter average earnings surprise of 8.2%.

Factors Likely to Impact BUD’s Q4 Results

AB InBev’s fourth-quarter 2024 results are likely to reflect the impacts of challenging macroeconomic conditions, including a soft consumer backdrop in China and Argentina. Currency and interest rate fluctuations are likely to have been other deterrents. Such limitations are likely to weigh on BUD’s upcoming quarterly results.

In addition, commodity cost inflation and increased supply-chain expenses are expected to have led to higher costs. Rising selling, general & administrative (SG&A) expenses, owing to increased business investments and higher operating costs, are likely to have remained concerns. Such elevated expenses are expected to have pressured AB InBev’s margins and profits. We expect the cost of sales to rise 5.7% year over year and SG&A costs to increase 8.9% for the fourth quarter.

On the flip side, 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 likely to have offered some cushion to the company’s performance.

Earnings Whispers for BUD Stock

Our 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 a Zacks Rank #4 (Sell) and an Earnings ESP of +7.74%.

BUD’s Valuation Picture & Stock Performance

The stock has a forward 12-month price-to-earnings ratio of 14.65X compared with the five-year high of 25.58X and the Beverages - Alcohol industry’s average of 14.07X.

The recent market movements show that BUD shares have lost 12.8% in the past six months compared with the industry's 18.6% decline.

Stocks Poised to Beat Earnings Estimates

Here are some companies, which according to our model, have the correct combination to beat on earnings this time around.

General Mills GIS currently has an Earnings ESP of +3.17% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

GIS is anticipated to register a decline in its top and bottom lines when it reports third-quarter fiscal 2025 results. The Zacks Consensus Estimate for General Mills’ quarterly revenues is pegged at $5.1 billion, indicating a drop of 0.8% from the figure reported in the prior-year quarter. 

The consensus estimate for General Mills’ bottom line has dipped a penny in the past seven days to $1.02 per share. This implies a decline of 12.8% from the year-ago quarter’s figure. GIS delivered earnings beat of 7.8%, on average, in the trailing four quarters.

Grocery Outlet Holding GO currently has an Earnings ESP of +1.32% and a Zacks Rank of 3. The company is likely to register a decrease in the bottom line when it reports fourth-quarter 2024 numbers. The Zacks Consensus Estimate for quarterly earnings per share is pegged at 17 cents, down 5.6% from the year-ago period. The consensus mark has been stable in the past 30 days.

Grocery Outlet's top line is expected to rise year over year. The consensus estimate for quarterly revenues is pegged at $1.09 billion, which indicates an increase of 9.7% from the prior-year quarter. GO has a trailing four-quarter negative earnings surprise of 2.2%, on average.

Hormel Foods HRL has an Earnings ESP of +0.66% and a Zacks Rank of 3 at present. HRL is likely to register top and bottom-line decline when it releases first-quarter fiscal 2025 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $2.9 billion, which implies a dip of 2% from the figure in the prior-year quarter.

The consensus estimate for Hormel Foods’ bottom line has moved down a penny to 38 cents per share in the past 30 days. The estimate indicates a 7.3% decline from the year-ago quarter. HRL delivered an earnings surprise of 7.4%, on average, in the trailing four quarters.

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