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The Boston Beer Company, Inc. SAM is scheduled to report fourth-quarter 2024 results on Feb. 25. In the fourth quarter, the company is anticipated to have registered bottom-line growth from the year-ago quarter’s reported figure.
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The Boston Beer Company, Inc. Price, Consensus and EPS Surprise
The Boston Beer Company, Inc. price-consensus-eps-surprise-chart | The Boston Beer Company, Inc. Quote
The Zacks Consensus Estimate for loss per share is pegged at $1.18, suggesting an improvement from a loss per share of $1.49 reported in the year-ago quarter. The consensus mark for loss per share has widened in the past seven days. For quarterly revenues, the consensus estimate is pegged at $389.6 million, suggesting a 1.04% decline from the year-ago quarter’s reported number.
In the last reported quarter, SAM delivered an earnings beat of 7.9%. It has a trailing four-quarter earnings surprise of 154.6%, on average.
Factors Shaping SAM’s Q4 Results
Boston Beer is expected to have faced continued headwinds in the fourth quarter due to the ongoing slowdown in the hard seltzer category and weakening demand for its Truly brand. The declining trend in hard seltzers suggests pressure on depletions, particularly as consumer preferences shift toward other beyond-beer alternatives and premium light beers due to their lower pricing.
The lack of novelty in the hard seltzer space, combined with increased competition from emerging beverage categories, may have weighed on Truly’s performance. Additionally, macroeconomic challenges, including inflationary pressure and shift in discretionary spending, may have driven volume away from hard seltzers, impacting Boston Beer’s overall sales mix.
However, Boston Beer is well-positioned for improved performance in the quarter to be reported, driven by strong price realization and procurement savings, which continue to offset inflationary pressures. The company’s ability to execute strategic pricing actions and optimize costs resulted in an expansion in gross margin, a trend that is expected to persist.
SAM has been focused on strategic pricing, product innovation and brand development to strengthen its market position and drive operational performance. The company has been expanding its presence in the Beyond Beer category, which has been outpacing the traditional beer market. With sustained growth in this segment, SAM expects the trend to persist, further solidifying its competitive edge.
What the Zacks Model Unveils for SAM Stock
Our proven model does not conclusively predict an earnings beat for Boston Beer this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here. You can uncover the best stocks before they are reported with our Earnings ESP Filter.
Boston Beer currently has an Earnings ESP of -24.19% and a Zacks Rank #3.