SAM leans on pricing, innovation and cost cuts to counter hard seltzer woes and shifting demand trends. This is likely to impact second-quarter 2025 results.
Boston Beer (SAM) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
The alcohol industry is currently facing headwinds from weight loss medications, shifting consumer preferences, and outside forces like tariffs. Boston Beer Company has been the worst performing stock this year in the group of Alcohol related companies I examined. Even with the company having the worst performing stock ytd, the company financial performance and management activity has been positive and this dislocation makes the stock an intriguing contrarian idea.
Boston Beer (SAM) was a big mover last session on higher-than-average trading volume. The latest trend in earnings estimate revisions might not help the stock continue moving higher in the near term.
Boston Beer's Q1 sales were very strong due to great shipments, but the underlying performance was also resilient. Sales should remain good with Sun Cruiser's rollout and Twisted Tea's resilience. The gross margin has continued to recover significantly despite continued shortfall fees and non-cash pre-payments. Despite tariff pressure, Boston Beer should continue to gain margin. Boston Beer's stock remains moderately overvalued. I estimate a fair value of $210.9.
SAM's Q1 results reflect momentum across core brands and recent innovations, with higher shipments in Sun Cruiser, Hard Mountain Dew and Twisted Tea brands.
The Boston Beer Company, Inc. (NYSE:SAM ) Q1 2025 Earnings Conference Call April 24, 2025 5:00 PM ET Company Participants Michael Andrews - Associate General Counsel and Corporate Secretary James Koch - Chairman, Founder, and Brewer Michael Spillane - President and Chief Executive Officer Diego Reynoso - Chief Financial Officer and Treasurer Conference Call Participants Peter Grom - UBS Filippo Filorni - Citigroup Nadine Sarwat - Bernstein Eric Serotta - Morgan Stanley Michael Lavery - Piper Sandler Bonnie Herzog - Goldman Sachs Robert Ottenstein - Evercore ISI Operator Greetings, and welcome to the Boston Beer Company First Quarter 2025 Earnings Call. At this time, all participants are in a listen-only mode.
Boston Beer (SAM) came out with quarterly earnings of $2.16 per share, beating the Zacks Consensus Estimate of $0.78 per share. This compares to earnings of $1.04 per share a year ago.
SAM's Q1 results are likely to be affected by challenges in the hard seltzer category, offset by pricing and Beyond Beer growth.
Boston Beer (SAM) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
SAM's recent stock performance and premium valuation reflect growing investor concerns as it continues to navigate a tough operating environment.
Investors looking for stocks in the Beverages - Alcohol sector might want to consider either Molson Coors Brewing (TAP) or Boston Beer (SAM). But which of these two companies is the best option for those looking for undervalued stocks?