World’s largest brewer Anheuser-Busch InBev SA/NV’s (BUD – Free Report), alias AB InBev, dismal earnings trend persisted in third-quarter 2017 as the bottom line lagged estimates for the seventh straight quarter. Moreover, revenues missed estimate for the second consecutive quarter.

Despite the dismal surprise history, AB InBev’s stock has improved 15.3% year to date. However, it has lagged the industry’s growth of 23.6%.

Q3 Highlights

Normalized earnings per share of $1.31 rose 57.8% from 83 cents earned in the year-ago quarter on the back of higher profits. However, earnings fell short of the Zacks Consensus Estimate of $1.50.

Anheuser-Busch Inbev SA Price, Consensus and EPS Surprise

Anheuser-Busch Inbev SA Price, Consensus and EPS Surprise | Anheuser-Busch Inbev SA Quote

Revenues advanced 32.7% to $14,740 million but missed the Zacks Consensus Estimate of $15,398 million. Further, the company registered organic revenue growth of 3.6% on the back of a 5.4% rise in revenues per hectoliter (hl) on a constant geographic basis. This improvement resulted from ongoing revenue management and premiumization initiatives that bolstered the performance of its global brands, particularly outside their home markets. Further, revenues per hl advanced 5% on a reported basis.

Consolidated revenues for the company’s three global brands, namely Budweiser, Corona and Stella Artois, increased 1.6% in the reported quarter. Global brands revenues for the quarter comprised 9.6% growth at Corona and 0.9% rise in Stella Artois, partially offset by 2.2% decline at Budweiser. Growth at Corona can be attributed to 11.2% revenue growth outside Mexico, including strength in China, Colombia, and Ecuador. Meanwhile, revenue growth at Stella Artois was driven by persistent strength in Argentina and Brazil. While Budweiser revenues declined year over year, it included a 4.4% growth outside the United States, led by Brazil, South Korea and Chile.