Ambev (NYSE:ABEV) Issues Quarterly Earnings Results, Meets Estimates

Key Points

• Ambev met earnings expectations, reporting quarterly EPS of $0.04, while revenue of $3.89 billion fell short of the $4.05 billion consensus estimate. Net margin was 17.69% and return on equity was 16.63%.
• Shares traded at about $3.10, near the analysts’ consensus target price of $3.09. Analysts’ overall view was cautious, with six Hold ratings and one Sell rating, producing an average “Reduce” rating.
• The company declared a quarterly dividend of $0.0092 per share, equivalent to approximately $0.04 annually and a 1.2% yield; the dividend payout ratio is 10.53%.

Ambev (NYSE:ABEV - Get Free Report) released its quarterly earnings data on Wednesday. The company reported $0.04 EPS for the quarter, hitting analysts' consensus estimates of $0.04, FiscalAI reports. Ambev had a net margin of 17.69% and a return on equity of 16.63%. The firm had revenue of $3.89 billion during the quarter, compared to the consensus estimate of $4.05 billion.

Ambev Stock Performance

Shares of ABEV stock traded down $0.01 during trading hours on Thursday, reaching $3.10. The stock had a trading volume of 59,898,597 shares, compared to its average volume of 25,677,977. The firm has a market capitalization of $48.78 billion, a PE ratio of 16.29, a price-to-earnings-growth ratio of 1.83 and a beta of 0.64. The firm has a 50-day simple moving average of $3.14 and a 200-day simple moving average of $3.03. Ambev has a twelve month low of $2.10 and a twelve month high of $3.45. The company has a debt-to-equity ratio of 0.02, a current ratio of 1.03 and a quick ratio of 0.78.

Ambev Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Monday, January 11th. Investors of record on Wednesday, June 24th will be issued a $0.0092 dividend. This represents a $0.04 dividend on an annualized basis and a dividend yield of 1.2%. The ex-dividend date of this dividend is Wednesday, June 24th. Ambev's dividend payout ratio (DPR) is 10.53%.

Insider Buying and Selling

In other Ambev news, insider Paulo Andre Zagman sold 136,250 shares of the firm's stock in a transaction that occurred on Tuesday, May 5th. The shares were sold at an average price of $3.41, for a total value of $464,612.50. Following the sale, the insider owned 230,535 shares in the company, valued at approximately $786,124.35. This trade represents a 37.15% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link.

Institutional Trading of Ambev

Several hedge funds have recently added to or reduced their stakes in ABEV. Tower Research Capital LLC TRC bought a new stake in shares of Ambev during the second quarter valued at about $66,000. Vise Technologies Inc. bought a new stake in shares of Ambev during the 4th quarter worth about $64,000. SmartHarvest Portfolios LLC acquired a new stake in shares of Ambev in the 4th quarter worth approximately $62,000. Focus Partners Wealth boosted its holdings in shares of Ambev by 40.3% in the third quarter. Focus Partners Wealth now owns 26,962 shares of the company's stock valued at $62,000 after acquiring an additional 7,738 shares in the last quarter. Finally, NewEdge Advisors LLC increased its stake in shares of Ambev by 17.7% during the fourth quarter. NewEdge Advisors LLC now owns 23,578 shares of the company's stock valued at $58,000 after acquiring an additional 3,553 shares during the period. Institutional investors own 8.13% of the company's stock.

Analyst Upgrades and Downgrades

A number of research analysts have recently issued reports on ABEV shares. Weiss Ratings downgraded shares of Ambev from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Wednesday, May 6th. Barclays increased their price objective on shares of Ambev from $3.00 to $3.50 and gave the stock an "equal weight" rating in a research note on Wednesday, May 6th. Scotiabank cut shares of Ambev from a "sector outperform" rating to a "sector perform" rating in a report on Wednesday, July 15th. Wall Street Zen downgraded Ambev from a "buy" rating to a "hold" rating in a research note on Monday, July 13th. Finally, UBS Group upped their target price on Ambev from $2.65 to $2.90 and gave the company a "sell" rating in a report on Thursday, May 14th. Six research analysts have rated the stock with a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of "Reduce" and a consensus target price of $3.09.

About Ambev

Ambev NYSE: ABEV is a Brazilian-based beverage company that produces, distributes and markets a broad portfolio of alcoholic and non-alcoholic drinks. The company's core business centers on brewing and selling beer, alongside a range of soft drinks, bottled water, energy drinks and other malt-based beverages. Headquartered in São Paulo, Ambev operates an integrated value chain that covers manufacturing, packaging, logistics and commercial sales to retail, on-premise and institutional customers.

The company traces its origins to the 1999 merger of two historic Brazilian breweries, and later became part of the broader global brewing group through subsequent industry consolidations.

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