Dj General Mills Inc, Inst Holders, 4Q 2024 (Gis)

Anheuser-Busch InBev SA/NV BUD, also known as AB InBev, is slated to release fourth-quarter 2024 earnings on Feb. 26, before the opening bell. The leading alcohol beverage company is likely to register year-over-year revenue and earnings declines when it reports quarterly numbers.

The Zacks Consensus Estimate for AB InBev’s quarterly revenues is pegged at $14.4 billion, indicating a 0.2% drop from the year-ago quarter’s reported number. For fourth-quarter earnings, the consensus mark is pegged at 72 cents per share, indicating a 12.2% decrease from the prior-year figure. The consensus estimate has been stable in the past 30 days.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

In the last reported quarter, the company’s earnings per share beat the Zacks Consensus Estimate by 8.9%. It has a trailing four-quarter average earnings surprise of 8.2%.

Factors Likely to Impact BUD’s Q4 Results

AB InBev’s fourth-quarter 2024 results are likely to reflect the impacts of challenging macroeconomic conditions, including a soft consumer backdrop in China and Argentina. Currency and interest rate fluctuations are likely to have been other deterrents. Such limitations are likely to weigh on BUD’s upcoming quarterly results.

In addition, commodity cost inflation and increased supply-chain expenses are expected to have led to higher costs. Rising selling, general & administrative (SG&A) expenses, owing to increased business investments and higher operating costs, are likely to have remained concerns. Such elevated expenses are expected to have pressured AB InBev’s margins and profits. We expect the cost of sales to rise 5.7% year over year and SG&A costs to increase 8.9% for the fourth quarter.

On the flip side, AB InBev’s premiumization efforts bode well. The company has been focused on premium beer offerings, aligning with consumer preferences in the alcohol industry. It continues to build a diverse portfolio of global, international, craft and specialty premium brands, with its global brands leading the premiumization trend. The expansion of the Beyond Beer portfolio and investments in B2B platforms, e-commerce and digital marketing bode well. Such efforts are likely to have offered some cushion to the company’s performance.

Anheuser-Busch InBev SA/NV Price and EPS Surprise

Anheuser-Busch InBev SA/NV price-eps-surprise | Anheuser-Busch InBev SA/NV Quote

Earnings Whispers for BUD Stock

Our proven model does not conclusively predict an earnings beat for AB InBev this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here. You can uncover the best stocks before they are reported with our Earnings ESP Filter.

AB InBev has a Zacks Rank #4 (Sell) and an Earnings ESP of +7.74%.

BUD’s Valuation Picture & Stock Performance

The stock has a forward 12-month price-to-earnings ratio of 14.65X compared with the five-year high of 25.58X and the Beverages - Alcohol industry’s average of 14.07X.

The recent market movements show that BUD shares have lost 12.8% in the past six months compared with the industry's 18.6% decline.

Stocks Poised to Beat Earnings Estimates

Here are some companies, which according to our model, have the correct combination to beat on earnings this time around.

General Mills GIS currently has an Earnings ESP of +3.17% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

GIS is anticipated to register a decline in its top and bottom lines when it reports third-quarter fiscal 2025 results. The Zacks Consensus Estimate for General Mills’ quarterly revenues is pegged at $5.1 billion, indicating a drop of 0.8% from the figure reported in the prior-year quarter.

The consensus estimate for General Mills’ bottom line has dipped a penny in the past seven days to $1.02 per share. This implies a decline of 12.8% from the year-ago quarter’s figure. GIS delivered earnings beat of 7.8%, on average, in the trailing four quarters.

Grocery Outlet Holding GO currently has an Earnings ESP of +1.32% and a Zacks Rank of 3. The company is likely to register a decrease in the bottom line when it reports fourth-quarter 2024 numbers. The Zacks Consensus Estimate for quarterly earnings per share is pegged at 17 cents, down 5.6% from the year-ago period. The consensus mark has been stable in the past 30 days.

Grocery Outlet's top line is expected to rise year over year. The consensus estimate for quarterly revenues is pegged at $1.09 billion, which indicates an increase of 9.7% from the prior-year quarter. GO has a trailing four-quarter negative earnings surprise of 2.2%, on average.

Hormel Foods HRL has an Earnings ESP of +0.66% and a Zacks Rank of 3 at present. HRL is likely to register top and bottom-line decline when it releases first-quarter fiscal 2025 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $2.9 billion, which implies a dip of 2% from the figure in the prior-year quarter.

The consensus estimate for Hormel Foods’ bottom line has moved down a penny to 38 cents per share in the past 30 days. The estimate indicates a 7.3% decline from the year-ago quarter. HRL delivered an earnings surprise of 7.4%, on average, in the trailing four quarters.

Zacks Investment Research

The Boston Beer Company, Inc. SAM is scheduled to report fourth-quarter 2024 results on Feb. 25. In the fourth quarter, the company is anticipated to have registered bottom-line growth from the year-ago quarter’s reported figure.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

The Boston Beer Company, Inc. Price, Consensus and EPS Surprise

The Boston Beer Company, Inc. price-consensus-eps-surprise-chart | The Boston Beer Company, Inc. Quote

The Zacks Consensus Estimate for loss per share is pegged at $1.18, suggesting an improvement from a loss per share of $1.49 reported in the year-ago quarter. The consensus mark for loss per share has widened in the past seven days. For quarterly revenues, the consensus estimate is pegged at $389.6 million, suggesting a 1.04% decline from the year-ago quarter’s reported number.

In the last reported quarter, SAM delivered an earnings beat of 7.9%. It has a trailing four-quarter earnings surprise of 154.6%, on average.

Factors Shaping SAM’s Q4 Results

Boston Beer is expected to have faced continued headwinds in the fourth quarter due to the ongoing slowdown in the hard seltzer category and weakening demand for its Truly brand. The declining trend in hard seltzers suggests pressure on depletions, particularly as consumer preferences shift toward other beyond-beer alternatives and premium light beers due to their lower pricing.

The lack of novelty in the hard seltzer space, combined with increased competition from emerging beverage categories, may have weighed on Truly’s performance. Additionally, macroeconomic challenges, including inflationary pressure and shift in discretionary spending, may have driven volume away from hard seltzers, impacting Boston Beer’s overall sales mix.

However, Boston Beer is well-positioned for improved performance in the quarter to be reported, driven by strong price realization and procurement savings, which continue to offset inflationary pressures. The company’s ability to execute strategic pricing actions and optimize costs resulted in an expansion in gross margin, a trend that is expected to persist.

SAM has been focused on strategic pricing, product innovation and brand development to strengthen its market position and drive operational performance. The company has been expanding its presence in the Beyond Beer category, which has been outpacing the traditional beer market. With sustained growth in this segment, SAM expects the trend to persist, further solidifying its competitive edge.

What the Zacks Model Unveils for SAM Stock

Our proven model does not conclusively predict an earnings beat for Boston Beer this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here. You can uncover the best stocks before they are reported with our Earnings ESP Filter.

Boston Beer currently has an Earnings ESP of -24.19% and a Zacks Rank #3.

Valuation Picture of SAM Stock

From a valuation perspective, Boston Beer stock is trading at a premium relative to historical and industry benchmarks. With a forward 12-month price-to-earnings of 19.28x, below the Beverages - Soft drinks industry’s average of 14.14x, the stock offers compelling value for investors seeking exposure to the sector.

Boston Beer shares have shown a downward trend, falling 24.4% in the past three months compared with the industry’s decline of 12.1%.

SAM Stock's Performance in Past Three Months

Inter Parfums, Inc. IPAR is likely to register bottom-line growth when it reports fourth-quarter 2024 earnings on Feb. 25. Although the Zacks Consensus Estimate for quarterly earnings has moved down a penny in the past 30 days to 80 cents per share, the projection indicates an increase from 32 cents reported in the year-ago quarter.

The consensus mark for 2024 earnings is pegged at $5.14 per share, suggesting an 8.2% increase from the previous year’s reported figure. IPAR has a trailing four-quarter negative earnings surprise of 3.8%, on average.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

Things to Know About IPAR’s Upcoming Results

Inter Parfums is experiencing growth driven by increasing demand for its products and a robust brand portfolio. A strategic focus on innovation and product launches has been helping the company stay firm amid a dynamic, competitive and growing marketplace. An expanding e-commerce presence has been yielding. The continuation of these trends bodes well for the to-be-reported quarter’s performance. Management expects earnings per share (EPS) of $5.15 for full-year 2024.

Despite the global fragrance market's continued vibrancy and robust demand, the company’s sell-in has been slower than its sell-out, with retailers adopting a leaner inventory approach. While this is partly due to industry-wide destocking, the lag in sell-in could indicate weakening demand momentum. The persistence of this trend poses a risk to the company’s fourth-quarter results.

Interparfums, Inc. Price and EPS Surprise

Interparfums, Inc. price-eps-surprise | Interparfums, Inc. Quote

A Look at IPAR’s Sales Numbers

Inter Parfums recently came out with its sales results for the fourth quarter and 2024, highlighting strong performance driven by the strength of its brands. For the fourth quarter of 2024, Interparfums achieved a 10% increase in net sales, reaching $362 million. On a full-year basis, too, net sales rose 10% to $1.452 billion.

The company saw solid growth, driven by strong demand for its key brands. GUESS, its top-performing U.S.-based brand, delivered impressive results. IPAR's top six brands, which account for about 70% of net sales, experienced a 5% increase in the fourth quarter and a 4% rise for the full year. The newer additions, Lacoste and Roberto Cavalli made significant contributions to sales, accounting for 8% of quarterly sales improvement and 9% of full-year growth.

Europe-based net sales were $214 million in the fourth quarter, a 6% increase from the prior period, and reached $953 million for the full year, up 10% from 2023. This growth was driven by the strong performance of Jimmy Choo, the addition of Lacoste and effective execution across smaller brands. Interparfums saw a notable 11% increase in sales for Jimmy Choo during the fourth quarter and 7% for the full year. The company’s newest European brand, Lacoste, surpassed expectations, achieving $85 million in sales during its first year.

In the fourth quarter of 2024, Interparfums’ U.S.-based net sales reached $149 million, indicating a robust 16% year-over-year increase. For the full year, U.S.-based net sales rose 12% to $511 million from the prior year. This growth was fueled by strong performances from GUESS, Donna Karan/DKNY and the addition of Roberto Cavalli.

Earnings Whispers for IPAR Stock

Our proven model doesn’t conclusively predict an earnings beat for Inter Parfums this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Inter Parfums carries a Zacks Rank #2 and has an Earnings ESP of -2.64%.

Some Stocks With the Favorable Combination

Here are some companies worth considering, as our model shows that these also have the right combination of elements to beat on earnings this reporting cycle.

General Mills GIS currently has an Earnings ESP of +7.77% and a Zacks Rank #3. GIS is anticipated to register a decline in its top and bottom lines when it reports third-quarter fiscal 2025 results. The Zacks Consensus Estimate for General Mills’ quarterly revenues is pegged at $5.1 billion, indicating a decline of 0.8% from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for General Mills’ bottom line has been stable in the past seven days at $1.03 per share. The consensus estimate for GIS suggests a decline of 12% from the year-ago quarter’s reported figure. GIS has delivered an earnings beat of 7.8%, on average, in the trailing four quarters.

Freshpet, Inc. FRPT currently has an Earnings ESP of +14.67% and a Zacks Rank #2. FRPT is scheduled to report quarterly earnings on Feb. 20.

The Zacks Consensus Estimate for FRPT’s to-be-reported quarter’s earnings and revenues is pegged at 44 cents per share and $263.5 million, respectively. Shares of FRPT have gained 46.3% in the past year.

Grocery Outlet Holding GO currently has an Earnings ESP of +1.32% and a Zacks Rank of 3. The company is likely to register a decrease in the bottom line when it reports fourth-quarter 2024 numbers. The Zacks Consensus Estimate for the quarterly earnings per share is pegged at 17 cents, down 5.6% from the year-ago period.

Grocery Outlet's top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.09 billion, which suggests an increase of 9.7% from the prior-year quarter. GO has a trailing four-quarter negative earnings surprise of 2.2%, on average.

Zacks Investment Research

Keurig Dr Pepper Inc. KDP is poised to release fourth-quarter 2024 results on Feb. 25, before market open. Analysts are anticipating another decent performance from this beverage and coffee company with a year-over-year increase in revenues and earnings per share.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

For fourth-quarter revenues, the Zacks Consensus Estimate is pegged at $4.03 billion, indicating a 4.2% increase from the prior-year quarter’s figure. The consensus estimate for quarterly earnings has moved down a penny in the past 30 days to 57 cents per share. This figure calls for a 3.6% increase from the prior-year period. Also, the company has a trailing four-quarter earnings surprise of 3.4%, on average.

Keurig Dr Pepper, Inc Price, Consensus and EPS Surprise

Keurig Dr Pepper, Inc price-consensus-eps-surprise-chart | Keurig Dr Pepper, Inc Quote

Key Factors to Note Ahead of KDP’s Results

Keurig’s consumer-focused innovation model, supported by comprehensive scorecards tracking awareness, household penetration and loyalty, is expected to have driven continued market share gains in the to-be-reported quarter. The company's strategic focus on innovation, brand activity and strong commercial execution, combined with disciplined capital management and cost efficiency, positions it well for sustained growth across key categories such as liquid refreshment beverages, K-Cup pods and brewers.

Building on its successful expansion efforts, KDP's recent asset integration in Arizona and its extended distribution footprint in Tennessee are set to further enhance its operational reach and market presence. In Mexico, the company-owned Direct Store Delivery network continues to provide a significant competitive advantage in a market heavily reliant on traditional trade. The ongoing investments in expanding system coverage, adding selling routes and increasing cooler placements have already demonstrated strong growth trends, and these efforts are expected to yield further positive momentum in the to-be-reported quarter.

On its last earnings call, management reaffirmed its full-year guidance, alongside initiating projects to sustain growth over multiple years. The company expects 2024 constant-currency net sales growth in the mid-single digits. It continues to envision adjusted earnings per share growth in the high-single digits.

Keurig has been experiencing strong momentum in its Refreshment Beverages segment, which has been a key growth driver. The Zacks Consensus Estimate for this segment is pegged at $2.4 billion, representing a significant 4.7% year-over-year increase. This growth was led by strong sales and a good mix of products, helped by completing the transition of Electrolit. Results were driven by growth CSDs, thanks to affordable prices and strategic marketing. Continuation of this trend will aid the company’s top line in the near term.

KDP’s strong market share momentum is expected to continue in the upcoming quarter, driven by successful innovation, brand strength and strategic marketing. Dr Pepper’s popularity, fueled by its creamy coconut flavor and expanding zero-sugar options, will likely gain further traction, especially with the ongoing Fansville football campaign. Canada Dry’s Fruit Splash, 7UP’s refreshed look and Shirley Temple flavor are generating social media buzz, supporting continued category growth.

What the Zacks Model Unveils for KDP

Our proven model does not conclusively predict an earnings beat for Keurig this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here. You can uncover the best stocks before they are reported with our Earnings ESP Filter.

Keurig currently has an Earnings ESP of -0.93% and a Zacks Rank #3.

Valuation Picture of KDP Stock

From a valuation perspective, Keurig stock is trading at a discount relative to historical and industry benchmarks. With a forward 12-month price-to-earnings of 15.98x, below the five-year high of 23.33x, and the Beverages - Soft drinks industry’s average of 18.41x, the stock offers compelling value for investors seeking exposure to the sector.

Keurig shares have shown a upward trend, gaining 1.7% in the past three months, as compared the industry’s growth of 2.3%.

General Mills has an average rating of hold and mean price target of $67.67, according to analysts polled by FactSet.