PCG - Why Anheuser-Busch InBev PG&E and Granite Construction Slumped Today
Friday was a good day on Wall Street, as investors celebrated generally strong earnings performances from high-profile companies. Major benchmarks were up roughly half a percent, with particularly good gains for the tech-heavy Nasdaq Composite. Yet even in a positive market environment, some stocks weren't able to join in the rally. Anheuser-Busch InBev (NYSE: BUD), PG&E (NYSE: PCG), and Granite Construction (NYSE: GVA) were among the worst performers. Here's why they did so poorly.
Shares of Anheuser-Busch InBev fell 11% after the beer giant reported disappointing third-quarter results. The maker of Budweiser said that revenue was higher by 2.7% during the period compared to the prior-year quarter, but total volume was down 0.5%. Anheuser-Busch cited headwinds from rising commodity costs and foreign currency impacts, as well as the fact that the year-earlier period had gotten a boost from the timing of marketing expenses related to the 2018 FIFA World Cup. The company has noted what it calls the "premiumization" of the beer industry and is working to emphasize its higher-end brands, but investors seem nervous about whether Anheuser-Busch will keep up with its peers.
Image source: Anheuser-Busch.