Boston Beer Misses Forecasts
Boston Beer Misses Second-Quarter Earnings and Revenue Forecasts; Full-Year Outlook Provided
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Boston Beer Co. missed Wall Street targets in the second quarter, reporting net income of $3.65 per share — well below analyst expectations of $4.77 per share, according to The Hour. The maker of Samuel Adams beer posted total revenue of $607.8 million, but adjusted revenue came in at $568.3 million, also missing the $570.3 million forecast.
The company earned $51.6 million in net profit for the quarter. Despite the miss, Boston Beer held firm on its full-year outlook, guiding for earnings between $8.50 and $10.50 per share, according to The Hour.
Revenue Miss Signals Continued Pressure on Craft Beer
Boston Beer's adjusted revenue of $568.3 million fell short of the $570.3 million Wall Street expected. The $2 million gap may seem small, but it reflects ongoing headwinds in the craft beer and hard seltzer markets. The company has struggled to grow sales as consumer tastes shift and competition grows, according to The Hour.
The gap between total revenue ($607.8 million) and adjusted revenue ($568.3 million) is about $39.5 million. That difference strips out one-time or non-recurring items. Analysts focus on the adjusted number because it better reflects the core business.
Earnings Per Share Fall More Than $1 Short of Forecasts
The company reported adjusted earnings of $3.65 per share. That missed the Wall Street target of $4.77 per share by $1.12 — a gap of about 23%. Missing by that margin is a significant shortfall and can weigh on a stock's price, according to The Hour.
The total net income figure was $51.6 million for the quarter. Boston Beer trades under the ticker SAM on the New York Stock Exchange. The stock is closely watched as a barometer for the health of the broader craft beverage industry.
Full-Year Guidance Holds Despite Weak Quarter
Even with the Q2 miss, Boston Beer kept its full-year earnings forecast in place. The company expects to earn between $8.50 and $10.50 per share for all of 2024, according to The Hour. That is a wide range, which signals the company sees real uncertainty ahead.
The midpoint of that range is about $9.50 per share. To hit that target, Boston Beer will need to post stronger numbers in the second half of the year. The company has not said publicly what changes it plans to make to hit its goals.
What This Means for Boston Beer's Road Ahead
Boston Beer has faced a tough stretch since hard seltzer sales peaked a few years ago. Its flagship Truly brand lost ground to rivals. The company has been working to cut costs and grow new brands to make up for slower seltzer sales, according to The Hour.
Missing on both earnings per share and adjusted revenue in the same quarter adds pressure on management. Investors will watch closely to see if the second half of the year brings a turnaround. The wide guidance range of $8.50 to $10.50 per share shows the company itself is not sure how things will play out.
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