Anheuser-Busch InBev SA/NV BUD, alias AB InBev, has been putting up a dismal show lately, owing to its dismal earnings trend. First-quarter 2018 marked AB InBev’s return to the negative earnings surprise trend, after a beat in the preceding quarter. While solid sales growth and synergies from cost savings continued to aid results, higher sales and marketing expenses ahead of the FIFA World Cup, along with fall in other operating income due to difficult comparisons, were impediments.
Consequently, shares of AB InBev have lost 16.4% in the past three months, wider than the Beverages – Alcoholindustry’s 11.7% decline. Moreover, the industry is unfavorably ranked in the bottom 16% (215 out of 255) of the Zacks classified industries. Also, a VGM Score of F indicates that this Zacks Rank #5 (Strong Sell) stock has fallen out of investors’ favor.