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

Core Viewpoint - AB InBev is expected to report year-over-year earnings growth for Q1 2025, despite a projected 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 $13.9 billion, reflecting a 4.8% decline from the same quarter last year [2]. - The consensus estimate for earnings per share (EPS) is 77 cents, indicating a 2.7% increase from the prior-year figure [2]. - The earnings estimate has remained stable over the past 30 days, with the company having a trailing four-quarter average earnings surprise of 11.7% [2]. Factors Influencing Q1 Results - AB InBev's results are anticipated to benefit from strategic measures such as pricing actions, premiumization, and revenue management initiatives [3]. - Strong consumer demand for its brand portfolio and investments in digital transformation are expected to drive top-line momentum [3][4]. - The company's focus on premium beer offerings aligns with consumer preferences, contributing positively to performance [4]. Cost and Economic Challenges - Elevated costs from commodity inflation, supply-chain issues, and long-term growth investments are expected to impact results negatively [5]. - A challenging macroeconomic environment, particularly in China and Argentina, along with currency and interest rate fluctuations, may also weigh on performance [5]. Earnings Prediction Model - The current model does not predict a definitive earnings beat for AB InBev, with an Earnings ESP of -1.91% and a Zacks Rank of 3 [6]. Valuation and Stock Performance - The stock has a forward 12-month price-to-earnings ratio of 16.83X, compared to a five-year high of 25.58X and the industry average of 16.26X [7]. - Year-to-date, AB InBev shares have increased by 29.8%, outperforming the industry growth of 7.5% [8].