Anheuser-Busch InBev (AB InBev), the multinational drink and brewing company, has announced a $1 billion share buyback initiative, following a strong Q3 performance that surpassed analyst expectations. This move has resulted in a 3.5% pre-market surge in the company's shares on Tuesday.
The company's Q3 normalized EBITDA grew by 4.1%, significantly outperforming the anticipated 0.3% average growth by analysts. Despite a 3.4% volume decline in beer sales in the U.S due to a Bud Light boycott, Q3 revenues rose by 5.0% to $15.57 billion, largely due to an effective price-mix strategy. This strategy not only compensated for the volume decrease but also contributed to top-line growth marginally exceeding expectations, as noted by Bernstein and a trader.
In addition to the buyback initiative, AB Inbev plans to offer $3 billion in cash for bonds as part of its debt reduction strategy. Analysts from Bernstein and J.P.Morgan have signaled confidence in the company's deleveraging efforts.
In other market news, Tesla (NASDAQ:TSLA) experienced a 1.4% decline in shares following Panasonic (OTC:PCRFY)'s announcement of scaled-back battery production, which has raised concerns about declining electric vehicle demand. Meanwhile, Stellantis (NYSE:STLA) saw a near 3% rise in shares after reaching a tentative deal with the United Auto Workers, offsetting a $797 million profit loss from strike-induced production interruptions and announcing a 7% revenue growth.
BP (NYSE:BP)'s ADRs fell by 3.5% due to disappointing earnings results linked to underperformance in gas and wind segments. The S&P Case-Shiller Home Price Index is set to rise by 0.8% in August, while October's Consumer Confidence Index is predicted to drop to 100 from September’s reading of 103.
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