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

Key Points

• Ambev met earnings expectations with quarterly EPS of $0.05, while revenue of $4.17 billion fell slightly short of the $4.21 billion consensus estimate.
• Operating momentum remained positive: third-quarter volume rose 0.8%, net revenue increased 7.6%, normalized EBITDA grew 8.9%, and Brazil Beer gained market share, particularly in premium and zero-alcohol products.
• Shareholder returns strengthened through a completed BRL 3.3 billion buyback, a new program for up to 190 million shares, and a 1.4%-yielding dividend; however, rising costs, macroeconomic pressures, and mixed analyst sentiment remain risks.

Ambev (NYSE:ABEV - Get Free Report) posted its quarterly earnings results on Thursday. The company reported $0.05 earnings per share for the quarter, hitting analysts' consensus estimates of $0.05, FiscalAI reports. Ambev had a net margin of 18.47% and a return on equity of 17.48%. The company had revenue of $4.17 billion for the quarter, compared to the consensus estimate of $4.21 billion.

Here are the key takeaways from Ambev's conference call:

• Consistent growth continued: Third-quarter volume rose 0.8%, net revenue increased 7.6%, normalized EBITDA grew 8.9% with 40 basis points of margin expansion, and normalized EPS climbed 15.4%. Year-to-date normalized EBITDA and EPS increased 9.3% and 12.3%, respectively.
• Brazil Beer showed improving momentum and market-share gains. Volumes grew 3% year to date, while the company reported broad-based share gains, particularly in premium and zero-alcohol products, and said inventory levels were appropriate heading into the high season.
• Digital platforms are becoming meaningful growth engines. BEES Marketplace GMV grew more than 80%, while Zé Delivery GMV increased in the mid-teens; management highlighted direct consumer data as a tool for testing innovations and expanding premium and balanced-choice offerings.
• Cash generation and shareholder returns strengthened. Operating cash flow rose 39% to BRL 15.6 billion in the first nine months, the company completed a BRL 3.3 billion share buyback, paid BRL 1.9 billion in interest on capital, and approved a new buyback of up to 190 million shares, or approximately BRL 3 billion.
• Cost and macroeconomic risks remain. Consolidated cash COGS per hectoliter rose 6.5% in the quarter, with commodity and logistics pressures still affecting Brazil Beer; Argentina faced weak consumption and adverse weather, while a potential Brazilian alcohol “Sin Tax” remains an uncertainty despite management’s expectation of tax neutrality.

Ambev Stock Down 3.8%

NYSE ABEV traded down $0.10 on Thursday, reaching $2.67. The company had a trading volume of 25,969,839 shares, compared to its average volume of 26,472,457. The company has a debt-to-equity ratio of 0.02, a current ratio of 1.02 and a quick ratio of 0.76. Ambev has a 1 year low of $2.24 and a 1 year high of $3.45. The firm has a 50-day moving average of $3.03 and a 200-day moving average of $3.02. The firm has a market capitalization of $42.16 billion, a PE ratio of 13.42, a P/E/G ratio of 2.08 and a beta of 0.58.

Ambev Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, January 11th. Shareholders of record on Wednesday, September 23rd will be issued a $0.0092 dividend. This represents a $0.04 dividend on an annualized basis and a yield of 1.4%. The ex-dividend date is Wednesday, September 23rd. Ambev's dividend payout ratio is currently 15.00%.

Analyst Ratings Changes

ABEV has been the topic of a number of research analyst reports. Wall Street Zen upgraded Ambev from a "hold" rating to a "buy" rating in a report on Saturday, October 10th. UBS Group set a $2.85 target price on Ambev in a report on Tuesday, August 11th. Bank of America downgraded shares of Ambev from a "neutral" rating to an "underperform" rating and set a $3.30 target price for the company. in a research report on Wednesday, October 7th. Weiss Ratings cut shares of Ambev from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Monday. Finally, Scotiabank lowered shares of Ambev from a "sector outperform" rating to a "sector perform" rating in a research report on Wednesday, July 15th. Four analysts have rated the stock with a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat, the stock presently has an average rating of "Reduce" and an average price target of $3.13.

Insider Activity

In other news, insider Carla Smith De Vasconcellos Crippa Prado sold 60,757 shares of the business's stock in a transaction on Thursday, September 3rd. The shares were sold at an average price of $3.09, for a total transaction of $187,739.13. Following the transaction, the insider directly owned 80,707 shares of the company's stock, valued at approximately $249,384.63. The trade was a 42.95% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink.

Key Ambev News

Here are the key news stories impacting Ambev this week:

• Positive Sentiment: Ambev completed its previous share-repurchase program, canceled 279 million repurchased shares, and approved a new program to buy back up to 190 million shares over two years. The reduced share count and potential future support for the stock are favorable for investors. Ambev completes share buyback and approves new program
• Positive Sentiment: Wall Street Zen upgraded Ambev to “Buy,” suggesting improving sentiment toward the company’s valuation and operating outlook. Wall Street Zen upgrades Ambev stock
• Neutral Sentiment: Ambev confirmed an October Form 6-K filing with the U.S. Securities and Exchange Commission, formally providing investors with its latest corporate and financial disclosures. Ambev confirms October 2026 Form 6-K filing
• Negative Sentiment: Third-quarter revenue rose to $4.17 billion but fell short of the $4.21 billion analyst consensus. EPS of $0.05 matched expectations, limiting the earnings disappointment but offering little upside surprise. Ambev third-quarter and nine-month earnings results
• Negative Sentiment: Net profit declined approximately 10% year over year in the third quarter, reinforcing concerns about margin pressure despite higher revenue. Ambev profit falls 10 percent

About Ambev

Ambev SA is a Brazilian beverage company headquartered in São Paulo and one of the largest beverage producers in Latin America. Its principal business is the production, distribution and sale of beer, although it also offers soft drinks, carbonated beverages, bottled water, energy drinks and other non-alcoholic products.

The company's beer portfolio includes brands such as Brahma, Skol, Antarctica, Bohemia, Original, Budweiser, Stella Artois and Corona, with brand availability varying by market.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.