Ambev (NYSE:ABEV – Get Free Report) posted its quarterly earnings results on Thursday. The company reported $0.05 earnings per share (EPS) for the quarter, hitting analysts’ consensus estimates of $0.05, FiscalAI reports. The business had revenue of $4.17 billion during the quarter, compared to analyst estimates of $4.21 billion. Ambev had a net margin of 18.47% and a return on equity of 17.48%.
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 Performance
NYSE:ABEV traded down $0.10 during midday trading on Thursday, reaching $2.69. The stock had a trading volume of 34,000,075 shares, compared to its average volume of 26,506,885. Ambev has a 1-year low of $2.24 and a 1-year high of $3.45. The firm’s fifty day simple moving average is $3.03 and its 200-day simple moving average is $3.02. The company has a debt-to-equity ratio of 0.02, a current ratio of 1.02 and a quick ratio of 0.76. The stock has a market capitalization of $42.32 billion, a P/E ratio of 13.42, a PEG ratio of 2.08 and a beta of 0.58.
Ambev Announces Dividend
The company also recently disclosed a quarterly dividend, which will be paid on Monday, January 11th. Stockholders of record on Wednesday, September 23rd will be paid a $0.0092 dividend. This represents a $0.04 dividend on an annualized basis and a dividend yield of 1.4%. The ex-dividend date is Wednesday, September 23rd. Ambev’s payout ratio is presently 15.00%.
Insiders Place Their Bets
In other Ambev 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 completion of the transaction, the insider owned 80,707 shares of the company’s stock, valued at $249,384.63. The trade was a 42.95% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website.
Trending Headlines about Ambev
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
Analyst Ratings Changes
Several equities research analysts recently commented on ABEV shares. Weiss Ratings cut Ambev from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Monday. Wall Street Zen upgraded shares of Ambev from a “hold” rating to a “buy” rating in a research note on Saturday, October 10th. Bank of America cut shares of Ambev from a “neutral” rating to an “underperform” rating and set a $3.30 target price for the company. in a research note on Wednesday, October 7th. Scotiabank downgraded shares of Ambev from a “sector outperform” rating to a “sector perform” rating in a research report on Wednesday, July 15th. Finally, UBS Group set a $2.85 price target on shares of Ambev in a research note on Tuesday, August 11th. Four investment analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, Ambev presently has an average rating of “Reduce” and a consensus target price of $3.13.
Get Our Latest Stock Report on ABEV
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.
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