Beer company Boston Beer (NYSE:SAM) will be reporting earnings tomorrow after market close. Here’s what to expect.
Boston Beer met analysts’ revenue expectations last quarter, reporting revenues of $605.5 million, flat year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ EBITDA estimates but full-year EPS guidance missing analysts’ expectations.
Is Boston Beer a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Boston Beer’s revenue to be flat year on year at $391.2 million, improving from the 12% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$1.33 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Boston Beer has missed Wall Street’s revenue estimates five times over the last two years.
Looking at Boston Beer’s peers in the beverages, alcohol, and tobacco segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Coca-Cola delivered year-on-year revenue growth of 4.2%, beating analysts’ expectations by 6.5%, and Philip Morris reported revenues up 7.3%, topping estimates by 2.8%. Coca-Cola traded up 6.5% following the results while Philip Morris was also up 10.2%.
Read our full analysis of Coca-Cola’s results here and Philip Morris’s results here.
Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market has been optimistic as of late due to a soft landing. This is an economic situation where rate hikes successfully quelled inflation but did not send the economy into a recession. Furthermore, recent rate cuts and Donald Trump's triumph in the 2024 Presidential election have been tailwinds for the market, and while some of the beverages, alcohol, and tobacco stocks have shown solid performance, the group has generally underperformed, with share prices down 2.5% on average over the last month. Boston Beer is down 9.5% during the same time and is heading into earnings with an average analyst price target of $292.77 (compared to the current share price of $230).
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