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AB InBev (BUD) to Report Q3 Earnings: What to Expect?

The world's largest alcoholic-beverage company, Anheuser-Busch InBev SA/NVBUD is slated to report third-quarter 2015 results on Oct 30, before the opening bell. In the last quarter, the company had delivered a negative earnings surprise of 9.7%. Let's see how things are shaping up for this announcement.

Factors Influencing This Quarter

Though AB InBev posted lower-than-expected top and bottom line results for second-quarter 2015, it reiterated its outlook for 2015. The company's top line continues to gain from the ongoing revenue management initiatives and enhanced brand mix backed by its premiumization strategies. Looking ahead, the company expects industry volumes to improve throughout 2015 in the U.S., Mexico, Brazil and China. However, the company's volumes may be slightly impacted by the rising demand for craft beer in the country.

Earnings Whispers

Our proven model does not conclusively show that Anheuser-Busch is likely to beat estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for this to happen. This is not the case here, as you will see below:

Zacks ESP: Earnings ESP for Anheuser-Busch is currently 0.00%. This is because both the Most Accurate estimate and Zacks Consensus Estimate are at $1.27.

Zacks Rank: Anheuser-Busch carries a Zacks Rank #3 (Hold). Though a Zacks Rank #3 increases the predictive power of ESP, the company's ESP of 0.00% makes surprise prediction difficult.

We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.

Stocks That Warrant a Look

Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:

Dean Foods Company DF has an Earnings ESP of +4.00% and a Zacks Rank #2 (Buy).

The Clorox Company CLX has an Earnings ESP of +0.85% and a Zacks Rank #3.

Ralph Lauren Corporation. RL has an Earnings ESP of +0.58% and a Zacks Rank #3.

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DEAN FOODS CO (DF): Free Stock Analysis Report

RALPH LAUREN CP (RL): Free Stock Analysis Report

CLOROX CO (CLX): Free Stock Analysis Report

ANHEUSER-BU ADR (BUD): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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