‘Not Enough for Happy Hours’: Analysts Discuss Boston Beer Shares After a Big EPS Miss
2022.04.22 14:46
‘Not Enough for Happy Hours’: Analysts Discuss Boston Beer (SAM) Shares After a Big EPS Miss
Boston Beer (NYSE:SAM) reported a Q1 loss per share of 16c, compared to EPS of $5.26 in the year-ago period and expected EPS of $2.04. Net revenue stood at $430.1 million in the period, down 21% YoY and missing the consensus estimates of $446.3 million.
As a result, shares trade over 3% in the red in early Friday trading.
The company expects FY adjusted EPS in the range of $11 to $16, compared to analyst expectations of $14.02 per share. SAM projects gross margin to range between 45% and 48% for the full year.
“Despite our depletions decline, we gained dollar share in measured off-premise channels in the first quarter – the second-largest share gain among brewers,” said Boston Beer Chairman and Founder Jim Koch.
“We continue to believe we have strategies in place to get back to company-wide mid single-digit to double-digit depletions growth driven by broad-based growth across our entire portfolio of brands – especially as consumers drink more ‘Beyond Beer’ products – and via our strong innovation pipeline.”
Goldman Sachs analyst Bonnie Herzog reiterated a Neutral rating post earnings on expectations that the SAM stock will “remain pressured until more measurable signs of stabilization and/or improvements for the hard seltzer category emerge, which realistically could take more time.”
“While the stock has pulled back considerably in the last few months, we still see potential downside given lack of visibility and expect the stock to underperform tomorrow,” the analyst wrote in a client note.
Guggenheim analyst Laurent Grandet is more positive as she reiterated a Buy rating and a $520.00 per share price target.
“While we are a bit more optimistic that SAM will hit the low end of guidance, investors may be willing to see how the seltzer category and Truly settle into the summer, when the brand faces easier comps. We are positive on SAM after months of poor performance and guidance revision, as we think the stock has found its bottom in terms of valuation,” Grandet said.
By Senad Karaahmetovic
