AB InBev shares fall after quarterly revenue misses expectations
The brewer’s Brussels-listed stock dropped 4% at the open after third-quarter sales rose 2.1%, below estimates, while earnings beat expectations.
By Marcus V. Thorne · Markets Editor
· 2 min read
Anheuser-Busch InBev shares fell 4% in early Brussels trading after the brewer reported third-quarter revenue growth that was below market expectations, MarketWatch reported. The company posted a 2.1% increase in revenue for the period, while earnings came in ahead of estimates.
The reaction underscored investor focus on top-line momentum at the world’s largest brewer, even as profitability exceeded expectations. Revenue growth measures the expansion in sales before the effects of costs and financing, while earnings reflect how much of that activity is converted into profit under the company’s accounting framework.
AB InBev also said its board had approved a $2 billion share buyback. A buyback authorisation allows a company to repurchase its own stock, subject to the programme’s terms and market conditions. If completed, repurchases can return capital to shareholders and may reduce the number of shares outstanding.
The company also raised the lower end of its full-year EBITDA forecast, according to MarketWatch. EBITDA, or earnings before interest, taxes, depreciation and amortisation, is a profitability measure often used by investors to assess operating performance before financing and certain non-cash charges.
The combination of weaker-than-expected revenue growth and stronger-than-expected earnings left investors weighing volume and pricing trends against cost control and margin performance. MarketWatch reported that the sales shortfall was the factor weighing on the stock in opening trade.
AB InBev’s update was released on Oct. 31, 2024. No additional figures for sales estimates, earnings estimates or the revised EBITDA range were reported by MarketWatch.
This story draws on original reporting from MarketWatch.
