AB InBev to report Q3 earnings Tuesday: What to watch for

Beer maker Anheuser-Busch InBev (BUD) will report third-quarter earnings on Tuesday, October 31. Analysts expect volume growth to decline for another consecutive quarter as boycotts from American consumers continue to weigh on the brand.

Yahoo Finance Reporter Brooke DiPalma highlights the earnings expectations from the Bud Light parent company, noting its newly announced partnership with the UFC.

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Video Transcript

JOSH SCHAFER: Ab InBev is set to report its latest quarterly results on Tuesday this coming as the company tries to turn around Bud Light sales following backlash from a partnership earlier this year. Here with what investors should watch out for is Yahoo finance's very own Brooke DiPalma. Brooke.

BROOKE DIPALMA: Good afternoon, Josh. That's right, many analysts on the street are wondering, have we hit the bottom yet for Anheuser-Busch? And this past quarter being very important, especially given that we're coming up around the time where retailers restock their shelves and choose what they want to fill, but Wall Street is largely expecting a softer third quarter earnings result.

Revenue is expected to come in at $15.83 billion, while adjusted earnings per share is expected to come in at $0.85. Now volume growth is expected to decline yet again driven by a decline here in the US. It's also worth noting that this quarterly result is being compared to last year when many retailers look to buy ahead of price increases that took effect in October of 2022.

And many analysts are once again expecting that we might have hit a peak impact this past quarter as once again, those retailers readjusted. But some positive here, analysts are expecting improved profit growth as the cost of goods begin to ease the pressure there. In addition to that, many keeping an eye on its Latin America exposure, especially in Brazil which they said should be fairly resilient. And really what we're largely looking for is any sort of comeback story from this beverage giant.

JULIE HYMAN: Brooke, the company also recently announcing a partnership with the UFC.

BROOKE DIPALMA: Yeah, Julie, that's right, the company announcing a partnership with the UFC. One marketing expert that I spoke to said that this is really going to let them drive into a younger demographic that won't necessarily go to other sports. We know that Anheuser-Busch is really trying to double down on its demographic. Who that is, they're really trying to understand.

But we have seen them really invest heavily in marketing when it comes to sports. That deal, though, is set to begin on January 1st 2024. And so while they might mention it on their earnings call, those details I'm sure we'll hear a lot more of in the coming year.