Ambev SA’s Q1 2025 Earnings: A Mixed Bag

As the financial world turns its gaze towards Brazil’s beverage giant, Ambev SA, the company is set to unveil its Q1 2025 earnings on May 8, 2025. Investors and analysts alike are keenly awaiting the results, which are expected to shed light on the company’s performance amidst a challenging economic landscape.

Earnings and Revenue Insights

According to a preview from Seeking Alpha, Ambev is anticipated to report a diluted earnings per share (EPS) of $0.041 for the quarter ending March 31, 2025. This figure represents a decline from the previous year’s EPS of $0.050, signaling a potential slowdown in profitability. On the revenue front, analysts project a quarterly revenue of approximately $3.83 billion, marking a 6.53% decrease from the $4.09 billion reported in the same quarter of the previous year.

For the full fiscal year, expectations are set for an average EPS of $0.170, mirroring the previous year’s performance. However, revenue forecasts suggest a slight dip to $16.27 billion from $16.59 billion, indicating a cautious outlook for the year ahead.

Market Reactions and Analyst Opinions

The anticipation surrounding Ambev’s earnings has sparked significant activity in the options market. On May 7, 2025, traders exhibited a heightened interest in Ambev’s call options, with purchases soaring by 361% compared to the average daily volume. This surge in options trading reflects a mix of optimism and speculation among investors.

Analyst ratings have varied, with Morgan Stanley downgrading Ambev from “equal weight” to “underweight,” while Citigroup maintained a “neutral” stance. Barclays adjusted its price target from $2.50 to $2.00, aligning with an “equal weight” rating. In contrast, StockNews.com initiated coverage with a “buy” rating, and Bank of America shifted its view from “buy” to “neutral.”

Non-GAAP Performance

In a separate report from Seeking Alpha, Ambev disclosed a non-GAAP EPS of R$0.24 and a revenue of R$22.49 billion for the quarter. These figures provide an alternative perspective on the company’s financial health, offering insights beyond the standard GAAP metrics.

Conclusion

As Ambev prepares to release its Q1 2025 earnings, the beverage industry and investors are watching closely. The company’s performance will not only reflect its resilience in a competitive market but also influence its strategic direction in the coming months. With mixed analyst opinions and active trading in options, Ambev’s financial results are poised to make waves in the market.