BUD Earnings: Anheuser-Busch Gains After Promising Q1 Results

Beer and beverage major Anheuser-Busch (NYSE:BUD) reported better-than-anticipated first-quarter numbers and encouraging volume trends. Shares of the company are up by nearly 5% in the premarket session today amid expectations of easing pressures from a long drawn-out U.S. Bud Light boycott by consumers.

BUD’s Q1 Growth

BUD’s Q1 top line rose by 2.4% year-over-year to $14.55 billion, outpacing estimates by $120 million. Its EPS of $0.75 fared better than the consensus by $0.09. This growth was led by the performance of brands such as Corona, Leffe, Aguila, and Spaten. Concurrently, the company’s EBITDA margin improved by 90 basis points to 34.3%.

Importantly, this performance came despite a 0.6% decline in BUD’s total volumes. This points to price gains as well as easing cost pressures for the company. While the company experienced growth in its Middle Americas, South America, Africa, and Europe regions, these gains were offset by weakness in APAC and North America.

Anheuser-Busch’s Improving Trends

In the U.S., BUD’s revenue declined by 9.1%, and EBITDA contracted by nearly 18%. While the company is still facing an impact from the Bud Light Boycott in the country, its sequential gains in the beer market point to potentially easing pressures over the coming periods. Additionally, BUD clocked record volumes in Mexico, Brazil, and South Africa.

For Fiscal year 2024, BUD expects EBITDA growth to be between 4% and 8%. The company anticipates capital expenditures in the range of $4 billion to $4.5 billion during this period.

What Is the Price Outlook for BUD Stock?

BUD’s share price has tumbled by nearly 17% over the past three years. Overall, the Street has a Moderate Buy consensus rating on the stock, alongside an average BUD price target of $74.25. However, analysts’ views on the company could see a revision following today’s earnings report.

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