The recent volatility on Wall Street is making head spin. Mixed earnings alongside dour economic reports have left even the most seasoned analysts hazy on where stocks are headed. So what to do when the majority of data seems to reveal nothing? Sit back relax and have a drink. Or at least buy shares of a company that sells them. Amid weak guidance from stocks across the sector the most recent earnings report from Anheuser Busch InBev (BUD) sent a very clear message.
Profit for the company added around 26 percent with net profit reaching $1.45 billion against $1.15 billion in the year-ago-period. Sales for the company were up 8.5 percent to $9.95 billion and rose 3.7 percent on an organic basis.
The company expects volume to continue to improvement in the second half of the year, especially in the fourth quarter in spite of the benefit last year’s Soccer World Cup had on earnings.
When the economy sputters, people tend to reach for a cold one. The recent woes could be expected to drive up profits even more for the next quarter. The company is still weak from the recent downturn, hovering marginally above it’s 52-week lows in spite of the positive news. It has a P/E ratio of 20.06.
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