Why Heineken Stock Is Skyrocketing Today

Shares of Heineken (OTC:HEINY) are flying higher on Wednesday. The company's stock had gained 13.9% at 11:45 a.m. ET but was up as much as 14.3% earlier in the day. The gain comes as the S&P 500 dropped 0.7% and the Nasdaq Composite (NASDAQINDEX:$NASX) was down 0.4% on the day.

The beverage giant reported better-than-expected year-end earnings before the market opened on Wednesday. The company also announced a substantial stock buyback.

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The numbers

For 2024, Heineken delivered diluted earnings per share (EPS) of $5.07 on sales of $37.3 billion. The Dutch brewer expanded margins, growing its operating profit by 8.3% year over year, well above analysts' estimates of 5.3% and surpassing Heineken's own guidance.

Although the company grew overall beer volume -- a key metric in the alcohol industry -- by just 1.6%, it expanded beer volume for its nonalcoholic offerings by 10%. The company was able to grow its sales across all four of its global regions and, critically, in both developed and emerging markets -- beer sales across the industry have struggled lately in the former.

What's next for Heineken

The company also announced that it will be making share repurchases totaling $1.55 billion over the next two years. Share repurchases help drive value for existing shareholders. Wall Street was generally pleased with the earnings call; analysts at RBC Capital Markets told investors that this "was an excellent set of results."

As it looks to the future, Heineken seeks to adapt to changing consumer tastes with its "EverGreen" strategy, placing a greater emphasis on less traditional products like nonalcoholic beer.

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Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.