Anheuser-Busch Earnings Hurt By Currency And Declining Share Of Budweiser; Focus On Deleveraging

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Anheuser-Busch InBev (NYSE: BUD), a multinational drink and brewing holdings company, announced its fourth quarter 2018 results on February 28, 2019, followed by a conference call with analysts. The company met consensus estimates on revenue but missed the earnings target. BUD reported revenue of...

Though the company saw revenues grow in most of its segment, sales remained flat in the U.S. at $15.9 billion, as declining beer sales and higher marketing expenses adversely affected the overall performance. However, the EMEA region proved to be the biggest drag on total revenues, with revenues from the region declining by 19% to $8.4 billion in 2018 compared to $10.3 billion in 2017.

Thus, we believe that the stock price still has some upside potential from its current level, driven by growing sales in emerging markets, the non-cyclical nature of the business, synergies and productivity savings achieved due to acquisition, the focus on lowering debt which would in turn translate into better margins, and modest shareholder returns which are expected to grow over time.

We have a price estimate of $85 per share for Anheuser-Busch InBev’s share price, which is higher than its current market price.

 

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'Making terrible beer finally catches up with beer company'

CorporateAmerica needs to fall!! They have to make way for what really is the backbone of the US small and medium sized business. SupportLocal

Billionaire problems dang woe is me.

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