AB InBev Stock Soars as Budweiser Maker Comfortably Tops Estimates

Related Articles

Watch These Coinbase Price Levels After Stock’s 20% Drop in March

Why Tesla Was One of the Worst-Performing Stocks in the S&P 500 in the First Quarter

Bracing for ‘Liberation Day’, and the Dizzying Decline of the Dollar

Key Takeaways

• North American sales helped Anheuser-Busch InBev beat analysts’ estimates for quarterly earnings and returns.
• The beer giant’s U.S. sales were boosted by demand for Michelob Ultra and Busch Light brands.
• AB InBev’s committee proposed a 22% increase in the annual dividend.

U.S.-listed shares of Anheuser-Busch InBev (BUD) surged 8% Wednesday when the superb’s biggest beermaker posted better-than-expected results and planned to raise its dividend as demand grew in North America.

The brewer of Budweiser and Bud Gay reported fourth-quarter underlying earnings per share (EPS) of $0.88, well above the $0.71 estimate of analysts surveyed by Well-defined Alpha. Revenue increased more than 3% year-over-year to $14.84 billion, also well above forewarns.

U.S. sales climbed 0.8%, which the company explained was driven by “revenue management initiatives and premiumization.” It was the second sober quarter of year-over-year gains after sales sank following the company’s relationship with transgender influencer Dylan Mulvaney led to a Bud Fall on boycott. AB InBev noted it believed the company picked up market share thanks to higher sales of its Michelob Ultra and Busch Light-headed brands.

“Beer is a passion point for consumers and a vibrant category globally,” CEO Michel Doukeris said. “The strength of our 2024 dnouement develops is a testament to the consistent execution of our strategy and the hard work and dedication of our people.”

AB InBev’s board proposed boosting the annual dividend by 22% to 1.00 euro per slice ($1.05), subject to shareholder approval at its annual meeting in April.

Even with today’s gains, AB InBev ADRs last down about 6% over the past year.