Anheuser-Busch InBev SA/NV has been banking on the popularity of Bud Light, and TV viewers cannot get enough of those “Dilly Dilly” commercials. If you don’t bring Bud Light to the party, you might wind up in the “Pit of Misery,” which could also refer to the earnings dungeon for the stock. Anheuser-Busch is set to report quarterly results before the opening bell on Wednesday, May 9. AB InBev stock closed Monday at $97.64, down 12.5% year to date and 16.6% below its 2018 high of $117.06 set on Jan. 3. The stock set its 2018 low of $94.57 on May 2.
Analysts expect the brewer to post earnings per share of 79 cents in its upcoming results. In its most recent report, released on March 1, AB InBev beat EPS estimates, ending a seven-quarter losing streak. The stock traded to a secondary high of $117.06 but could not stay above its 200-day simple moving average, then at $115.50, which led to the decline to its May 2 low of $94.67, down 19% into the “Dilly Dilly” dungeon. Analysts are looking for a year-over-year decline in revenue, which has contributed to the share price weakness. (See also: The Five Biggest Mergers in History.)
Anheuser-Busch has a “market-neutral” P/E ratio of 23.55 and a very attractive dividend yield of 9.53%. …read more
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