Wednesday, May 4, 2016

BUD & HAIN Earnings

This morning AB InBev and Hain Celestial reported earnings. Judging by the reaction in each healthy is winning over unhealthy(but more fun).

AB InBev(BUD) reported Q1 EPS of $0.51/share on revenues down 10.1% to $9.4 billion. That's a tough decline in revenues to take, but I think the company will work to fix this once the SABMiller transaction closes. That should allow it to focus more. The company did not make any changes to guidance. The shares are down over 2%. Here is what management had to say.

"The first quarter of 2016 saw a strong volume performance in Mexico, as well as improving volume trends in the US and Europe. However, our business in Brazil experienced one of its most challenging quarters in many years, as anticipated.

We expect the macroeconomic environment to remain challenging in a number of our markets. However, we have solid plans in place to address these challenges, and remain cautiously optimistic for the rest of the year. Consequently, we have not made any changes to our previous FY16 guidance. 

Hain Celestial(HAIN) reported Q3 EPS of $0.47/share on revenues up 13% to $750 million. The company updated FY'16 guidance to $2.00-$2.04 per share(Non-GAAP). The shares are up 8% this morning. Considering how beaten down the shares were it's kind of expected. Since the February lows the shares are up 30%. Here is what CEO Irwin Simon had to say. 

"Our net sales reflect the strong performance across our businesses led by Hain Celestial United States, Hain Pure Protein, Hain Celestial United Kingdom and Hain Celestial Europe as well as Hain Celestial Canada," said Irwin D. Simon, Founder, President and Chief Executive Officer of Hain Celestial. "The diversification of our product portfolio with leading organic, natural and better-for-you brands around the world, combined with our team's solid execution of our operational initiatives fueled our financial performance. We are extremely pleased with our US results where we returned to growth in the third quarter and expect these trends to continue."

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