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Boston Beer Gears Up to Report Q4 Earnings: Here's What to Expect
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The Boston Beer Company, Inc. (SAM - Free Report) is scheduled to report fourth-quarter 2024 results on Feb. 25. In the fourth quarter, the company is anticipated to have registered bottom-line growth from the year-ago quarter’s reported figure.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
The Boston Beer Company, Inc. Price, Consensus and EPS Surprise
The Zacks Consensus Estimate for loss per share is pegged at $1.18, suggesting an improvement from a loss per share of $1.49 reported in the year-ago quarter. The consensus mark for loss per share has widened in the past seven days. For quarterly revenues, the consensus estimate is pegged at $389.6 million, suggesting a 1.04% decline from the year-ago quarter’s reported number.
In the last reported quarter, SAM delivered an earnings beat of 7.9%. It has a trailing four-quarter earnings surprise of 154.6%, on average.
Factors Shaping SAM’s Q4 Results
Boston Beer is expected to have faced continued headwinds in the fourth quarter due to the ongoing slowdown in the hard seltzer category and weakening demand for its Truly brand. The declining trend in hard seltzers suggests pressure on depletions, particularly as consumer preferences shift toward other beyond-beer alternatives and premium light beers due to their lower pricing.
The lack of novelty in the hard seltzer space, combined with increased competition from emerging beverage categories, may have weighed on Truly’s performance. Additionally, macroeconomic challenges, including inflationary pressure and shift in discretionary spending, may have driven volume away from hard seltzers, impacting Boston Beer’s overall sales mix.
However, Boston Beer is well-positioned for improved performance in the quarter to be reported, driven by strong price realization and procurement savings, which continue to offset inflationary pressures. The company’s ability to execute strategic pricing actions and optimize costs resulted in an expansion in gross margin, a trend that is expected to persist.
SAM has been focused on strategic pricing, product innovation and brand development to strengthen its market position and drive operational performance. The company has been expanding its presence in the Beyond Beer category, which has been outpacing the traditional beer market. With sustained growth in this segment, SAM expects the trend to persist, further solidifying its competitive edge.
What the Zacks Model Unveils for SAM Stock
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 odds of an earnings beat. But that is not the case here. You can uncover the best stocks before they are reported with our Earnings ESP Filter.
Boston Beer currently has an Earnings ESP of -24.19% and a Zacks Rank #3.
Valuation Picture of SAM Stock
From a valuation perspective, Boston Beer stock is trading at a premium relative to historical and industry benchmarks. With a forward 12-month price-to-earnings of 19.28x, below the Beverages - Soft drinks industry’s average of 14.14x, the stock offers compelling value for investors seeking exposure to the sector.
Boston Beer shares have shown a downward trend, falling 24.4% in the past three months compared with the industry’s decline of 12.1%.
SAM Stock's Performance in Past Three Months
Image Source: Zacks Investment Research
Stocks With the Favorable Combination
Here are some companies that, according to our model, have the right combination of elements to beat on earnings this reporting cycle.
Hormel Foods Corporation (HRL - Free Report) currently has an Earnings ESP of +0.66% and a Zacks Rank of 3. The Zacks Consensus Estimate for its quarterly revenues is pegged at $2.9 billion, indicating a 2% decline from the figure reported in the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for HRL’s first-quarter 2025 earnings is pegged at 38 cents per share, implying a 7.3% decrease from the year-earlier quarter. The consensus mark has been stable in the past seven days.
General Mills (GIS - Free Report) currently has an Earnings ESP of +7.77% and a Zacks Rank #3. GIS is anticipated to register a decline in its top and bottom lines when it reports third-quarter fiscal 2025 results. The Zacks Consensus Estimate for General Mills’ quarterly revenues is pegged at $5.1 billion, indicating a decline of 0.8% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for General Mills’ bottom line has been stable in the past seven days at $1.03 per share. The consensus estimate for GIS suggests a decline of 12% from the year-ago quarter’s reported figure. GIS has delivered an earnings beat of 7.8%, on average, in the trailing four quarters.
Grocery Outlet Holding (GO - Free Report) currently has an Earnings ESP of +1.32% and a Zacks Rank of 3. The company is likely to register a decline in the bottom line when it reports fourth-quarter 2024 numbers. The Zacks Consensus Estimate for the quarterly earnings per share is pegged at 17 cents, down 5.6% from the year-ago period.
Grocery Outlet's top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.09 billion, which suggests an increase of 9.7% from the prior-year quarter. GO has a trailing four-quarter negative earnings surprise of 2.2%, on average.
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Boston Beer Gears Up to Report Q4 Earnings: Here's What to Expect
The Boston Beer Company, Inc. (SAM - Free Report) is scheduled to report fourth-quarter 2024 results on Feb. 25. In the fourth quarter, the company is anticipated to have registered bottom-line growth from the year-ago quarter’s reported figure.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
The Boston Beer Company, Inc. Price, Consensus and EPS Surprise
The Boston Beer Company, Inc. price-consensus-eps-surprise-chart | The Boston Beer Company, Inc. Quote
The Zacks Consensus Estimate for loss per share is pegged at $1.18, suggesting an improvement from a loss per share of $1.49 reported in the year-ago quarter. The consensus mark for loss per share has widened in the past seven days. For quarterly revenues, the consensus estimate is pegged at $389.6 million, suggesting a 1.04% decline from the year-ago quarter’s reported number.
In the last reported quarter, SAM delivered an earnings beat of 7.9%. It has a trailing four-quarter earnings surprise of 154.6%, on average.
Factors Shaping SAM’s Q4 Results
Boston Beer is expected to have faced continued headwinds in the fourth quarter due to the ongoing slowdown in the hard seltzer category and weakening demand for its Truly brand. The declining trend in hard seltzers suggests pressure on depletions, particularly as consumer preferences shift toward other beyond-beer alternatives and premium light beers due to their lower pricing.
The lack of novelty in the hard seltzer space, combined with increased competition from emerging beverage categories, may have weighed on Truly’s performance. Additionally, macroeconomic challenges, including inflationary pressure and shift in discretionary spending, may have driven volume away from hard seltzers, impacting Boston Beer’s overall sales mix.
However, Boston Beer is well-positioned for improved performance in the quarter to be reported, driven by strong price realization and procurement savings, which continue to offset inflationary pressures. The company’s ability to execute strategic pricing actions and optimize costs resulted in an expansion in gross margin, a trend that is expected to persist.
SAM has been focused on strategic pricing, product innovation and brand development to strengthen its market position and drive operational performance. The company has been expanding its presence in the Beyond Beer category, which has been outpacing the traditional beer market. With sustained growth in this segment, SAM expects the trend to persist, further solidifying its competitive edge.
What the Zacks Model Unveils for SAM Stock
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 odds of an earnings beat. But that is not the case here. You can uncover the best stocks before they are reported with our Earnings ESP Filter.
Boston Beer currently has an Earnings ESP of -24.19% and a Zacks Rank #3.
Valuation Picture of SAM Stock
From a valuation perspective, Boston Beer stock is trading at a premium relative to historical and industry benchmarks. With a forward 12-month price-to-earnings of 19.28x, below the Beverages - Soft drinks industry’s average of 14.14x, the stock offers compelling value for investors seeking exposure to the sector.
Boston Beer shares have shown a downward trend, falling 24.4% in the past three months compared with the industry’s decline of 12.1%.
SAM Stock's Performance in Past Three Months
Image Source: Zacks Investment Research
Stocks With the Favorable Combination
Here are some companies that, according to our model, have the right combination of elements to beat on earnings this reporting cycle.
Hormel Foods Corporation (HRL - Free Report) currently has an Earnings ESP of +0.66% and a Zacks Rank of 3. The Zacks Consensus Estimate for its quarterly revenues is pegged at $2.9 billion, indicating a 2% decline from the figure reported in the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for HRL’s first-quarter 2025 earnings is pegged at 38 cents per share, implying a 7.3% decrease from the year-earlier quarter. The consensus mark has been stable in the past seven days.
General Mills (GIS - Free Report) currently has an Earnings ESP of +7.77% and a Zacks Rank #3. GIS is anticipated to register a decline in its top and bottom lines when it reports third-quarter fiscal 2025 results. The Zacks Consensus Estimate for General Mills’ quarterly revenues is pegged at $5.1 billion, indicating a decline of 0.8% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for General Mills’ bottom line has been stable in the past seven days at $1.03 per share. The consensus estimate for GIS suggests a decline of 12% from the year-ago quarter’s reported figure. GIS has delivered an earnings beat of 7.8%, on average, in the trailing four quarters.
Grocery Outlet Holding (GO - Free Report) currently has an Earnings ESP of +1.32% and a Zacks Rank of 3. The company is likely to register a decline in the bottom line when it reports fourth-quarter 2024 numbers. The Zacks Consensus Estimate for the quarterly earnings per share is pegged at 17 cents, down 5.6% from the year-ago period.
Grocery Outlet's top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.09 billion, which suggests an increase of 9.7% from the prior-year quarter. GO has a trailing four-quarter negative earnings surprise of 2.2%, on average.