Boston Beer Beats on Both Top and Bottom Lines

Seth Jayson, The Motley Fool
Updated

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

The 10-second takeaway
 For the quarter ended Sep. 29 (Q3), Boston Beer beat expectations on revenues and beat expectations on earnings per share.

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


Gross margins shrank, operating margins increased, net margins grew.

Revenue details
 Boston Beer tallied revenue of $166.4 million. The four analysts polled by S&P Capital IQ expected revenue of $153.7 million on the same basis. GAAP reported sales were 23% higher than the prior-year quarter's $134.8 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 $1.53. The five earnings estimates compiled by S&P Capital IQ anticipated $1.35 per share. GAAP EPS of $1.53 for Q3 were 29% higher than the prior-year quarter's $1.19 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 56.0%, 40 basis points worse than the prior-year quarter. Operating margin was 20.0%, 40 basis points better than the prior-year quarter. Net margin was 12.5%, 40 basis points better than the prior-year quarter.

Looking ahead
 Next quarter's average estimate for revenue is $150.6 million. On the bottom line, the average EPS estimate is $1.14.

Next year's average estimate for revenue is $564.8 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 $108.14.

The article Boston Beer Beats on Both Top and Bottom Lines 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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