AmBev Rises Most in Three Years in Sao Paulo on Rebound Prospect
Cia. de Bebidas das Americas, the Brazilian unit of Anheuser-Busch InBev NV (ABI), rose the most in three years amid speculation it will rebound after dropping 12 percent in the past three months as earnings growth stagnated.
Shares of AmBev, as the company is also known, gained 5.7 percent to 82.69 reais at 4:22 p.m. in Sao Paulo, the biggest one-day advance since February 2010 on a closing basis. The benchmark Ibovespa rose 1.5 percent.
First-quarter adjusted net income was 2.3 billion reais ($1.15 billion), matching the same period a year earlier, according to data compiled by Bloomberg after the company released its earnings today. Revenue was 7.77 billion reais, below the average estimate of 8.3 billion reais among nine analysts surveyed by Bloomberg. Sales were expected to be affected by lower beer consumption and a crackdown on drunken driving in Brazil, according Espirito Santo Investment Bank.
“The market had already priced in the results,” Jose Francisco Cataldo Ferreira, an analyst at Agora CTVM SA, said by phone. “But it’s a very attractive stock at this price. As long as they don’t deliver something too different from expectations, it starts to rebound.”
AmBev has lost 3.1 percent this year while the Ibovespa retreated 8.6 percent.
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