Ambev SA ADR earnings beat, revenue fell short of estimates

AMBEV S.A. (ABEV) furnished an SEC Form 6-K — earnings release. Yes _______ No ___X____ Page | 1 AMBEV REPORTS 2026 THIRD QUARTER RESULTS [1] “The third quarter built on the progress we achieved in the first half of the year, with the consistent execution of our strategy delivering growth in volumes, net revenue and Normalized EBITDA, alongsi

Ambev reported Q3 Non-GAAP EPS of R$0.28 and revenue of R$21.59B, up 3.5% year-over-year. Consolidated volumes rose 0.8%, and normalized EBITDA grew 8.9% with a margin increase of 40 bps to 33.7%. The company approved a R$2.9B share buyback program.

Ambev S.A. (ABEV) shares fell 15.5% after Luiz Inácio Lula da Silva won Brazil's presidential election, surprising investors who favored Bolsonaro. The win may increase spending and regulation, hurting Brazil's currency and bonds, which could impact Ambev's earnings in USD terms. The company reports Q3 earnings on Oct. 29.

Luiz Inácio Lula da Silva won Brazil's presidential runoff with 51.8% of the vote, defeating Flávio Bolsonaro. Prediction markets favored Bolsonaro, but traditional polls showed a tight race. Post-election, Brazil-linked stocks and ETFs, including EWZ, Itau Unibanco, and Petrobras, declined significantly.

Petrobras (PBR) fell 15% after Lula's re-election in Brazil, as investors had bet on Bolsonaro's win. Government-controlled Petrobras has seen capital spending double and dividends drop since 2022. MercadoLibre (MELI) and Ambev (ABEV) also declined, with LATAM Airlines (LTM) down 9%.

Brazil's election results triggered a sell-off in Brazilian assets, with the iShares MSCI Brazil ETF (EWZ) falling over 20% and U.S.-listed Brazilian stocks like Petrobras, Itaú Unibanco, and Ambev also declining. Elon Musk's comments on neocloud stocks sent shares of CoreWeave, Nebius, and IREN lower in premarket trading. Apple's iPhone Duo launch saw shorter lines and supply issues, with investors awaiting initial reactions.