Ambev (NYSE:ABEV) Releases Earnings Results, Meets Expectations

Ambev (NYSE:ABEV) released its quarterly earnings results on Thursday. The company reported $0.05 EPS for the quarter, hitting the consensus estimate of $0.05, FiscalAI reports. The business had revenue of $4.17 billion for the quarter, compared to analysts’ expectations of $4.21 billion. Ambev had a return on equity of 17.48% and a net margin of 18.47%.

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

Shares of NYSE ABEV traded down $0.10 during trading on Thursday, reaching $2.67. The stock 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 quick ratio of 0.76 and a current ratio of 1.02. The stock has a market cap 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 has a one year low of $2.24 and a one year high of $3.45. The firm’s 50 day moving average price is $3.03 and its two-hundred day moving average price is $3.02.

Ambev Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Monday, January 11th. Stockholders 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 dividend yield of 1.4%. The ex-dividend date is Wednesday, September 23rd. Ambev’s payout ratio is 15.00%.

Insider Transactions at Ambev

In related news, insider Carla Smith De Vasconcellos Crippa Prado sold 60,757 shares of the firm’s stock in a transaction on Thursday, September 3rd. The stock was 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 in the company, valued at $249,384.63. This trade represents a 42.95% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink.

Analysts Set New Price Targets

ABEV has been the topic of several analyst reports. UBS Group set a $2.85 price objective on Ambev in a report on Tuesday, August 11th. Bank of America cut shares of Ambev from a “neutral” rating to an “underperform” rating and set a $3.30 price target on the stock. in a report on Wednesday, October 7th. Weiss Ratings downgraded shares of Ambev from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Monday. Wall Street Zen raised shares of Ambev from a “hold” rating to a “buy” rating in a report on Saturday, October 10th. Finally, Scotiabank downgraded shares of Ambev from a “sector outperform” rating to a “sector perform” rating in a research report on Wednesday, July 15th. Four investment analysts have rated the stock with a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, Ambev currently has an average rating of “Reduce” and a consensus target price of $3.13.

Key Headlines Impacting 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

Ambev Company Profile

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.