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Boston Beer reports strong Q3 results, but full-year guidance falls short of estimates

EditorRachael Rajan
Published 10/25/2024, 04:30 AM
© Reuters.
SAM
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BOSTON - The Boston Beer Company, Inc. (NYSE:SAM) reported third quarter earnings that beat analyst estimates, but posted full-year guidance below estimates, sending shares down slightly by 0.6% in after-hours trading.

The maker of Samuel Adams beer and Truly Hard Seltzer posted adjusted earnings per share of $5.35, topping the consensus estimate of $5.03. Revenue rose 0.6% year-over-year to $605.5 million, just above analyst expectations of $605.14 million.

However, Boston Beer provided full-year 2024 earnings guidance for a range of $8.00 to $10.00 per share, below the consensus estimate of $9.58. The company cited "somewhat softer near-term category trends."

"We continue to believe that there is significant growth opportunity in Beyond Beer categories despite some near-term variability in alcoholic beverage demand," said Chairman and Founder Jim Koch.

Depletions, a key industry metric measuring sales to retailers, decreased 3% in the quarter. Shipment volume fell 1.9% to approximately 2.24 million barrels.

The company's gross margin improved to 46.3%, up 60 basis points year-over-year, benefiting from price increases and procurement savings.

Boston Beer repurchased $191 million worth of shares year-to-date through October 18. The company also increased its share repurchase authorization by $400 million.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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