Compania Cervecerias Unidas (NYSE:CCU) Announces Earnings Results

Key Points

• Compania Cervecerias Unidas reported quarterly EPS of $0.31, topping analyst expectations of $0.25 by $0.06.
• The company also beat on revenue, posting $884.42 million versus the consensus estimate of $839.83 million.
• Despite the earnings beat, Wall Street sentiment remains bearish, with a consensus rating of “Strong Sell” and a target price of $12.00.

Compania Cervecerias Unidas (NYSE:CCU - Get Free Report) posted its earnings results on Wednesday. The company reported $0.31 earnings per share for the quarter, beating analysts' consensus estimates of $0.25 by $0.06, FiscalAI reports. Compania Cervecerias Unidas had a return on equity of 7.54% and a net margin of 4.14%.The company had revenue of $884.42 million for the quarter, compared to the consensus estimate of $839.83 million.

Compania Cervecerias Unidas Stock Performance

Shares of NYSE CCU traded down $0.09 during trading on Friday, hitting $11.95. The company had a trading volume of 122,725 shares, compared to its average volume of 167,937. The stock has a 50 day simple moving average of $11.86 and a 200 day simple moving average of $12.89. The company has a debt-to-equity ratio of 0.67, a quick ratio of 1.34 and a current ratio of 1.90. Compania Cervecerias Unidas has a 12 month low of $10.71 and a 12 month high of $15.36. The firm has a market capitalization of $2.21 billion, a P/E ratio of 17.57 and a beta of 0.53.

Institutional Trading of Compania Cervecerias Unidas

Institutional investors have recently made changes to their positions in the business. Arax Advisory Partners grew its position in shares of Compania Cervecerias Unidas by 917.9% during the fourth quarter. Arax Advisory Partners now owns 2,270 shares of the company's stock worth $29,000 after purchasing an additional 2,047 shares in the last quarter. Parallel Advisors LLC grew its position in shares of Compania Cervecerias Unidas by 69.1% during the fourth quarter. Parallel Advisors LLC now owns 2,557 shares of the company's stock worth $33,000 after purchasing an additional 1,045 shares in the last quarter. EverSource Wealth Advisors LLC grew its position in shares of Compania Cervecerias Unidas by 1,252.7% during the second quarter. EverSource Wealth Advisors LLC now owns 3,233 shares of the company's stock worth $42,000 after purchasing an additional 2,994 shares in the last quarter. Rhumbline Advisers grew its position in shares of Compania Cervecerias Unidas by 140.6% during the first quarter. Rhumbline Advisers now owns 6,555 shares of the company's stock worth $100,000 after purchasing an additional 3,831 shares in the last quarter. Finally, Advisory Services Network LLC purchased a new stake in shares of Compania Cervecerias Unidas during the third quarter worth about $91,000. Hedge funds and other institutional investors own 24.07% of the company's stock.

Wall Street Analysts Forecast Growth

Several research analysts have recently commented on CCU shares. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Compania Cervecerias Unidas in a research note on Friday, March 27th. Zacks Research downgraded Compania Cervecerias Unidas from a "hold" rating to a "strong sell" rating in a research note on Wednesday, April 1st. Finally, JPMorgan Chase & Co. raised their price objective on Compania Cervecerias Unidas from $10.00 to $14.00 and gave the stock an "underweight" rating in a research note on Monday, February 2nd. One research analyst has rated the stock with a Hold rating and three have given a Sell rating to the stock. Based on data from MarketBeat, Compania Cervecerias Unidas presently has a consensus rating of "Strong Sell" and a consensus target price of $12.00.

About Compania Cervecerias Unidas

Compañía Cervecerías Unidas SA NYSE: CCU is a Chile-based beverages company with operations across Latin America. The company engages in the production, marketing and distribution of beer, soft drinks, wines, mineral water and other non-alcoholic beverages. Through a combination of owned brands and licensing agreements, CCU serves both domestic and export markets with a diversified portfolio designed to meet evolving consumer tastes.

In its beer segment, CCU produces flagship brands such as Cristal, Escudo and Royal Guard, while also brewing international labels under license, including Heineken in select markets.

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