How the Wheels Came off Boston Beer's Bus

Seth Jayson, The Motley Fool
Updated

Boston Beer (NYS: SAM) reported earnings on Aug. 1. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q2), Boston Beer missed estimates on revenues and whiffed on earnings per share.

Compared to the prior-year quarter, revenue improved and GAAP earnings per share dropped significantly.


Margins dropped across the board.

Revenue details
Boston Beer tallied revenue of $147.5 million. The five analysts polled by S&P Capital IQ foresaw sales of $151.5 million on the same basis. GAAP reported sales were 10% higher than the prior-year quarter's $134.0 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $1.06. The six earnings estimates compiled by S&P Capital IQ predicted $1.24 per share. GAAP EPS of $1.06 for Q2 were 47% lower than the prior-year quarter's $2.01 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 54.5%, 230 basis points worse than the prior-year quarter. Operating margin was 15.9%, 230 basis points worse than the prior-year quarter. Net margin was 9.7%, 1,120 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $150.5 million. On the bottom line, the average EPS estimate is $1.30.

Next year's average estimate for revenue is $561.7 million. The average EPS estimate is $4.17.

Investor sentiment

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Boston Beer is hold, with an average price target of $107.57.

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The article How the Wheels Came off Boston Beer's Bus originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of Boston Beer. Motley Fool newsletter services recommend Boston Beer. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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