The Brazilian brewing company posted 13 earnings per share, surpassing analysts projected 5 cents per share. Revenue came in at $2.95 billion, falling short of analysts projected $3.2 billion.
Last year, the company reported earnings of 16 cents per share on revenue of $2.6 billion.
"Volumes were down 6.7% mainly driven by a decline in Brazil and Argentina as economic and political volatility in these countries continued to put pressure on beverage consumption," Ambev noted.
The company added that it saw solid growth in its Central America, Caribbean and Canadian markets.
Looking forward, Ambev said it expects to see some macroeconomic stabilization, as inflation slows down and consumer confidence rebounds. Still, the company lowered its 2016 top-line growth in Brazil to be flat instead of mid to high single digits.
Shares of Ambev closed down 0.17% to $5.87 in Thursday's trading session.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
We rate AMBEV SA as a Hold with a ratings score of C+. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its expanding profit margins, largely solid financial position with reasonable debt levels by most measures and notable return on equity. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow, a generally disappointing performance in the stock itself and feeble growth in the company's earnings per share.
You can view the full analysis from the report here: ABEV