The 10-second takeaway
For the quarter ended March 30 (Q1), Boston Beer beat expectations on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue increased significantly. GAAP earnings per share shrank.
Margins dropped across the board.
Boston Beer logged revenue of $135.9 million. The four analysts polled by S&P Capital IQ wanted to see net sales of $131.3 million on the same basis. GAAP reported sales were 20% higher than the prior-year quarter's $113.3 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.51. The six earnings estimates compiled by S&P Capital IQ averaged $0.62 per share. GAAP EPS of $0.51 for Q1 were 8.9% lower than the prior-year quarter's $0.56 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 49.9%, 470 basis points worse than the prior-year quarter. Operating margin was 7.1%, 340 basis points worse than the prior-year quarter. Net margin was 5.1%, 150 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $170.4 million. On the bottom line, the average EPS estimate is $1.28.
Next year's average estimate for revenue is $661.4 million. The average EPS estimate is $4.97.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Boston Beer is underperform, with an average price target of $139.00.
Is Boston Beer the best beverage bet for you? Learn how to maximize your investment income and "Secure Your Future With 9 Rock-Solid Dividend Stocks," including one above-average beverage seller. Click here for instant access to this free report.
- Add Boston Beer to My Watchlist.
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 of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool recommends Boston Beer. The Motley Fool owns 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.