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Here's How Boston Beer (SAM) is Placed Ahead of Q1 Earnings
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The Boston Beer Company, Inc. (SAM - Free Report) is scheduled to report first-quarter 2022 results on Apr 21. In the to-be-reported quarter, the company is anticipated to register top and bottom-line declines from the prior-year quarter.
The Zacks Consensus Estimate for first-quarter earnings is pegged at $2.05 per share, suggesting a 55.2% decline from the year-earlier quarter's reported figure. The consensus mark has moved down 3.8% in the past seven days. For quarterly revenues, the Zacks Consensus Estimate is pegged at $472.7 million, suggesting a 13.3% decrease from the prior-year quarter.
In the last reported quarter, the company delivered a negative earnings surprise of 102.8%. The company has a trailing four-quarter negative earnings surprise of 17.6%, on average.
The Boston Beer Company, Inc. Price and EPS Surprise
Boston Beer has been witnessing a dismal earnings trend in the past year, driven by the ongoing impacts of the slowdown in the hard seltzer business and supply-chain headwinds. Revenues have been impacted by lower production and shipment volumes due to the slowdown in growth trends for the hard seltzer category in recent quarters.
Further, indirect volume adjustment costs due to the hard seltzer slowdown and higher materials costs have been hurting margins. The persistence of these trends is likely to have weighed on the company’s top and bottom lines in the to-be-reported quarter.
Despite the strong depletion, Boston Beer is expected to have been impacted by a decline in shipments, as it continues to work through challenges within the supply chain and the impacts of the slowdown in hard seltzer. Shipment volumes are anticipated to have been hurt by declines in the Truly Hard Seltzer and Angry Orchard brands in the first quarter.
On the last reported quarter’s earnings call, management noted that service levels to wholesalers have further declined in early 2022 due to supply-chain constraints, resulting in increased out-of-stocks for certain brands and packages with its wholesalers. Also, the beer industry witnessed a slow start in 2022 due to the Omicron breakout, continued supply-chain challenges and commodity inflation.
The continued impacts of the above-mentioned factors are expected to have marred shipments in the to-be-reported quarter. The company anticipated shipments to decline in the first quarter of 2022 and return to growth in the second quarter.
The hard seltzer growth continues to be negatively impacted by several factors, including sluggish growth of household penetration as the market matures and new trails reduce. The demand has been impacted by the gradual transition to on-premise as hard seltzer has become a regular option in the channel.
Higher operating costs, including advertising, promotional and selling expenses, are anticipated to have weighed on the company’s profitability.
Moreover, the company expected earnings in the first quarter to be highly sensitive to changes in volume projections mainly due to the slowdown in the hard seltzer category and the supply-chain performance. This suggests soft earnings expectations for the to-be-reported quarter.
Nonetheless, Boston Beer’s robust brand portfolio and strategic initiatives are likely to have cushioned the performance in the to-be-reported quarter. The company’s continued focus on pricing, product innovation, growth of non-beer categories alongside brand development is likely to have boosted its operational performance and position in the market.
Its commitment to the three-point growth plan focused on reviving its Samuel Adams and Angry Orchard brands, cost-saving initiatives and innovation is expected to have contributed to the quarterly performance.
The company is expected to have benefited from lower operating costs, including reduced advertising, promotional and selling expenses, driven by lower brand investments, particularly in media and production.
Zacks Model
Our proven model does not conclusively predict an earnings beat for Boston Beer this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Boston Beer has a Zacks Rank #3 and an Earnings ESP of -16.72%.
Stocks Poised to Beat Earnings Estimates
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:
The Coca-Cola Company (KO - Free Report) currently has an Earnings ESP of +0.75% and a Zacks Rank of 3. The company is likely to register an increase in the top and bottom lines when it reports first-quarter 2022 numbers. The consensus mark for KO’s quarterly earnings has moved up by a penny in the past seven days to 58 cents per share. The consensus estimate suggests 5.5% growth from the year-ago quarter’s reported number.
Coca-Cola’s top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $9.93 billion, which suggests a rise of 10.1% from the figure reported in the prior-year quarter.
PepsiCo Inc. (PEP - Free Report) currently has an Earnings ESP of +0.06% and a Zacks Rank of 3. The company is likely to register an increase in the top and bottom lines when it reports first-quarter 2022 results. The consensus mark for PEP’s quarterly revenues is pegged at $15.6 billion, which suggests a rise of 5.1% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for PepsiCo’s first-quarter earnings has moved down by a penny to $1.24 per share in the past 30 days. The consensus estimate for PEP indicates 2.5% growth from $1.21 reported in the year-ago quarter.
Church & Dwight Co. (CHD - Free Report) currently has an Earnings ESP of +2.69% and a Zacks Rank of 3. The company is likely to register top-line growth when it reports first-quarter 2022 earnings. The consensus mark for CHD’s quarterly revenues is pegged at $1.28 billion, which suggests 3.6% growth from the figure reported in the prior-year quarter.
The consensus mark for Church & Dwight’s quarterly earnings has moved down by a penny in the past seven days to 76 cents per share. The consensus estimate for CHD’s first-quarter earnings suggests a decline of 8.4% from the year-ago quarter.
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Here's How Boston Beer (SAM) is Placed Ahead of Q1 Earnings
The Boston Beer Company, Inc. (SAM - Free Report) is scheduled to report first-quarter 2022 results on Apr 21. In the to-be-reported quarter, the company is anticipated to register top and bottom-line declines from the prior-year quarter.
The Zacks Consensus Estimate for first-quarter earnings is pegged at $2.05 per share, suggesting a 55.2% decline from the year-earlier quarter's reported figure. The consensus mark has moved down 3.8% in the past seven days. For quarterly revenues, the Zacks Consensus Estimate is pegged at $472.7 million, suggesting a 13.3% decrease from the prior-year quarter.
In the last reported quarter, the company delivered a negative earnings surprise of 102.8%. The company has a trailing four-quarter negative earnings surprise of 17.6%, on average.
The Boston Beer Company, Inc. Price and EPS Surprise
The Boston Beer Company, Inc. price-eps-surprise | The Boston Beer Company, Inc. Quote
Key Factors to Note
Boston Beer has been witnessing a dismal earnings trend in the past year, driven by the ongoing impacts of the slowdown in the hard seltzer business and supply-chain headwinds. Revenues have been impacted by lower production and shipment volumes due to the slowdown in growth trends for the hard seltzer category in recent quarters.
Further, indirect volume adjustment costs due to the hard seltzer slowdown and higher materials costs have been hurting margins. The persistence of these trends is likely to have weighed on the company’s top and bottom lines in the to-be-reported quarter.
Despite the strong depletion, Boston Beer is expected to have been impacted by a decline in shipments, as it continues to work through challenges within the supply chain and the impacts of the slowdown in hard seltzer. Shipment volumes are anticipated to have been hurt by declines in the Truly Hard Seltzer and Angry Orchard brands in the first quarter.
On the last reported quarter’s earnings call, management noted that service levels to wholesalers have further declined in early 2022 due to supply-chain constraints, resulting in increased out-of-stocks for certain brands and packages with its wholesalers. Also, the beer industry witnessed a slow start in 2022 due to the Omicron breakout, continued supply-chain challenges and commodity inflation.
The continued impacts of the above-mentioned factors are expected to have marred shipments in the to-be-reported quarter. The company anticipated shipments to decline in the first quarter of 2022 and return to growth in the second quarter.
The hard seltzer growth continues to be negatively impacted by several factors, including sluggish growth of household penetration as the market matures and new trails reduce. The demand has been impacted by the gradual transition to on-premise as hard seltzer has become a regular option in the channel.
Higher operating costs, including advertising, promotional and selling expenses, are anticipated to have weighed on the company’s profitability.
Moreover, the company expected earnings in the first quarter to be highly sensitive to changes in volume projections mainly due to the slowdown in the hard seltzer category and the supply-chain performance. This suggests soft earnings expectations for the to-be-reported quarter.
Nonetheless, Boston Beer’s robust brand portfolio and strategic initiatives are likely to have cushioned the performance in the to-be-reported quarter. The company’s continued focus on pricing, product innovation, growth of non-beer categories alongside brand development is likely to have boosted its operational performance and position in the market.
Its commitment to the three-point growth plan focused on reviving its Samuel Adams and Angry Orchard brands, cost-saving initiatives and innovation is expected to have contributed to the quarterly performance.
The company is expected to have benefited from lower operating costs, including reduced advertising, promotional and selling expenses, driven by lower brand investments, particularly in media and production.
Zacks Model
Our proven model does not conclusively predict an earnings beat for Boston Beer this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Boston Beer has a Zacks Rank #3 and an Earnings ESP of -16.72%.
Stocks Poised to Beat Earnings Estimates
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:
The Coca-Cola Company (KO - Free Report) currently has an Earnings ESP of +0.75% and a Zacks Rank of 3. The company is likely to register an increase in the top and bottom lines when it reports first-quarter 2022 numbers. The consensus mark for KO’s quarterly earnings has moved up by a penny in the past seven days to 58 cents per share. The consensus estimate suggests 5.5% growth from the year-ago quarter’s reported number.
Coca-Cola’s top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $9.93 billion, which suggests a rise of 10.1% from the figure reported in the prior-year quarter.
You can see the complete list of today’s Zacks #1 Rank stocks here.
PepsiCo Inc. (PEP - Free Report) currently has an Earnings ESP of +0.06% and a Zacks Rank of 3. The company is likely to register an increase in the top and bottom lines when it reports first-quarter 2022 results. The consensus mark for PEP’s quarterly revenues is pegged at $15.6 billion, which suggests a rise of 5.1% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for PepsiCo’s first-quarter earnings has moved down by a penny to $1.24 per share in the past 30 days. The consensus estimate for PEP indicates 2.5% growth from $1.21 reported in the year-ago quarter.
Church & Dwight Co. (CHD - Free Report) currently has an Earnings ESP of +2.69% and a Zacks Rank of 3. The company is likely to register top-line growth when it reports first-quarter 2022 earnings. The consensus mark for CHD’s quarterly revenues is pegged at $1.28 billion, which suggests 3.6% growth from the figure reported in the prior-year quarter.
The consensus mark for Church & Dwight’s quarterly earnings has moved down by a penny in the past seven days to 76 cents per share. The consensus estimate for CHD’s first-quarter earnings suggests a decline of 8.4% from the year-ago quarter.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.