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Consumer stocks XLP and XLY saw premarket gains today, with several companies reporting their quarterly earnings. Anheuser-Busch InBev, trading under the ticker symbol BUD, outperformed Capital IQ expectations with its third-quarter earnings. The beer conglomerate reported earnings of $0.86 per share, a figure that led to a 4% surge in its stock price.
In contrast, VF Corporation (NYSE:), known by its ticker VFC, saw its fiscal second-quarter earnings fall to $0.63 per share, a figure that was below analysts’ predictions. This disappointing announcement resulted in an 11% drop in the company’s stock.
Ambev SA, trading under the ticker ABEV, reported a rise in its third-quarter normalized earnings per share to 0.25 Brazilian real ($0.05), a development that triggered a near 3% climb in the company’s stock.
These varied results highlight the unpredictable nature of the stock market and the impact that individual company performance can have on broader sector trends.
InvestingPro Insights
Anheuser-Busch InBev (BUD) has made significant strides, as shown by the InvestingPro data. The company has a market cap of $112.37B USD and a P/E ratio of 18.23. The gross profit for the last twelve months as of Q2 2023 stood at $32.03B USD, indicating a robust profit margin of 54.21%. Furthermore, the company has maintained a consistent dividend payment for 23 years, indicating a stable investment.
InvestingPro Tips further underscore the company’s strong position. BUD has consistently increased its earnings per share and boasts impressive gross profit margins. Despite some analysts revising their earnings downwards for the upcoming period, the company has shown high earnings quality, with free cash flow exceeding net income. This is further supported by the fact that the company has been profitable over the last twelve months.
InvestingPro offers many more tips and insights for BUD and other companies. These insights can provide valuable guidance for investors looking to make informed decisions.
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