AmBev (ABV) is setting 52-week highs as analysts continue to raise full-year estimates on the heels of an excellent quarter.
Company Description
AmBev produces beer, soft drinks, and other beverages in Brazil. The company is best known for its licensing agreement with Anheuser-Busch, which they distribute in Canada.
Top Line Growth
AmBev reported quarterly results in November that saw net sales grow almost 20%. The company also saw 4.7% organic growth.
Earnings per share for ABV came in at an impressive $1.17, 21 cents higher than the Zacks Consensus Estimate. This was AmBev’s fourth consecutive earnings surprise.
Analysts React
Following the report, analysts raised full-year estimates for 2009 to $5.05, up 43 cents. The Zacks Consensus Estimates for 2010 is up to $6.16, from $5.40.
These levels represent growth rates of 37% and 22%, respectively, for AmBev’s EPS.
The Chart
AmBev’s stock is trading at its 52-week high. Fortunately, due to estimates revisions, shares of ABV are trading at about 17 times forward earnings. That is a solid valuation for a Brazilian company. Take a look at the chart below.
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