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%.

Factors Likely to Impact BUD’s Q1 Results

AB 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 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 an Earnings ESP of -1.91% and a Zacks Rank of 3.

BUD’s Valuation Picture & Stock Performance

The 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.

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The 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.

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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.

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.

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Molson Coors Beverage Company (TAP) : Free Stock Analysis Report

Anheuser-Busch InBev SA/NV (BUD) : Free Stock Analysis Report

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This article originally published on Zacks Investment Research (zacks.com).

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