Last week saw the newest annual earnings release from Budweiser Brewing Company APAC Limited (HKG:1876), an important milestone in the company's journey to build a stronger business. Revenues of US$6.2b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at US$0.055, missing estimates by 8.0%. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
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Following the latest results, Budweiser Brewing Company APAC's 27 analysts are now forecasting revenues of US$6.49b in 2025. This would be a modest 3.9% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to expand 12% to US$0.061. Before this earnings report, the analysts had been forecasting revenues of US$6.50b and earnings per share (EPS) of US$0.062 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
See our latest analysis for Budweiser Brewing Company APAC
It will come as no surprise then, to learn that the consensus price target is largely unchanged at HK$10.86. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Budweiser Brewing Company APAC, with the most bullish analyst valuing it at HK$15.98 and the most bearish at HK$8.51 per share. As you can see the range of estimates is wide, with the lowest valuation coming in at less than half the most bullish estimate, suggesting there are some strongly diverging views on how analysts think this business will perform. With this in mind, we wouldn't rely too heavily the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the business.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Budweiser Brewing Company APAC's rate of growth is expected to accelerate meaningfully, with the forecast 3.9% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 2.3% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 8.0% per year. It seems obvious that, while the future growth outlook is brighter than the recent past, Budweiser Brewing Company APAC is expected to grow slower than the wider industry.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Budweiser Brewing Company APAC's revenue is expected to perform worse than the wider industry. The consensus price target held steady at HK$10.86, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Budweiser Brewing Company APAC analysts - going out to 2027, and you can see them free on our platform here.
And what about risks? Every company has them, and we've spotted 1 warning sign for Budweiser Brewing Company APAC you should know about.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.