It's shaping up to be a tough period for Budweiser Brewing Company APAC Limited (HKG:1876), which a week ago released some disappointing quarterly results that could have a notable impact on how the market views the stock. Results showed a clear earnings miss, with US$1.7b revenue coming in 6.4% lower than what the analystsexpected. Statutory earnings per share (EPS) of US$0.015 missed the mark badly, arriving some 26% below what was expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Taking into account the latest results, the consensus forecast from Budweiser Brewing Company APAC's 30 analysts is for revenues of US$6.95b in 2025. This reflects a solid 8.6% improvement in revenue compared to the last 12 months. Per-share earnings are expected to jump 34% to US$0.073. In the lead-up to this report, the analysts had been modelling revenues of US$7.13b and earnings per share (EPS) of US$0.078 in 2025. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a minor downgrade to earnings per share estimates.

It'll come as no surprise then, to learn that the analysts have cut their price target 6.5% to HK$12.17. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Budweiser Brewing Company APAC analyst has a price target of HK$19.81 per share, while the most pessimistic values it at HK$8.41. So we wouldn't be assigning too much credibility to analyst price targets in this case, because there are clearly some widely different views on what kind of performance this business can generate. As a result it might not be a great idea to make decisions based on the consensus price target, which is after all just an average of this wide range of estimates.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Budweiser Brewing Company APAC's rate of growth is expected to accelerate meaningfully, with the forecast 6.8% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 2.2% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 8.6% annually. It seems obvious that, while the future growth outlook is brighter than the recent past, Budweiser Brewing Company APAC is expected to grow slower than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Budweiser Brewing Company APAC's future valuation.

With that in mind, we wouldn't be too quick to come to a conclusion on Budweiser Brewing Company APAC. Long-term earnings power is much more important than next year's profits. We have forecasts for Budweiser Brewing Company APAC going out to 2026, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Budweiser Brewing Company APAC that you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.