Boston Beer Crushes Estimates
Boston Beer (NYS: SAM) reported earnings yesterday. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Boston Beer beat expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share expanded significantly.
Gross margins contracted, operating margins improved, net margins improved.
Boston Beer reported revenue of $142.1 million. The five analysts polled by S&P Capital IQ hoped for a top line of $131.6 million on the same basis. GAAP reported sales were 23% higher than the prior-year quarter's $115.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $1.36. The six earnings estimates compiled by S&P Capital IQ forecast $1.11 per share on the same basis. GAAP EPS of $1.33 for Q4 were 53% higher than the prior-year quarter's $0.87 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 56.4%, 90 basis points worse than the prior-year quarter. Operating margin was 18.6%, 200 basis points better than the prior-year quarter. Net margin was 12.5%, 200 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $113.0 million. On the bottom line, the average EPS estimate is $0.42.
Next year's average estimate for revenue is $553.5 million. The average EPS estimate is $4.10.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Boston Beer is hold, with an average price target of $98.63.
Over the decades, small-cap stocks, like Boston Beer have provided market-beating returns, provided they're value priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add Boston Beer to My Watchlist.
At the time this article was published 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 have recommended buying shares of 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.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.