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Will Anheuser-Busch (BUD) Q1 Earnings Meet Expectations? - Analyst Blog

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Anheuser-Busch InBev SA/NVBUD is slated to report first-quarter 2015 results on May 6, before the opening bell. In the last quarter, the company had delivered a positive earnings surprise of 6.9%. Let's see how things are shaping up for this announcement.

Factors Influencing This Quarter

The world's largest alcoholic-beverage company continues to expect volume growth in the U.S., Mexico, Brazil and China. The company's net revenue per hectoliter will likely grow on par with inflation, while cost of goods sold per hectoliter is expected to increase in the low single digits in 2015.

We are optimistic about the company's upcoming results based on expectations of volume growth. However, we remain slightly cautious due to the anticipated rise in costs. Also, Brazil is expected to face macroeconomic hurdles, thus posing a concern for the company.

Earnings Whispers

Our proven model does not conclusively show that Anheuser-Busch is likely to beat earnings 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 pegged at 0.00%. This is because the Most Accurate estimate and the Zacks Consensus Estimate both stand at $1.06.

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 and 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:

Lowe's Companies Inc. LOW has an Earnings ESP of +2.70% and a Zacks Rank #2 (Buy).

Best Buy Co., Inc. BBY has an Earnings ESP of +13.79% and a Zacks Rank #3.

The Home Depot, Inc. HD has an Earnings ESP of +2.61% and a Zacks Rank #3.

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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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