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Boston Beer Q2 Earnings Beat & Raised '25 Outlook Fuel Stock Gains
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Key Takeaways
SAM posted Q2 EPS of $5.45, beating estimates and surging 241% year over year on pricing and mix gains.
Gross margin rose 380 bps to 49.8%, fueled by brewery efficiencies, pricing and a favorable product mix.
SAM raised its 2025 gross margin and EPS guidance while lowering capex amid softer volume expectations.
The Boston Beer Company, Inc. (SAM - Free Report) posted second-quarter 2025 results, wherein the bottom line beat the Zacks Consensus Estimate and improved year over year. Meanwhile, the top line missed the Zacks Consensus Estimate but exceeded year over year. Despite industry-wide volume pressures, the company showcased resilience in the second quarter of 2025.
Depletions declined 5% due to economic uncertainty and unfavorable weather during key selling weeks. Nevertheless, SAM managed to grow market share in the first half, driven by its diversified portfolio of iconic brands, a robust innovation pipeline and a high-performing sales force. Encouraged by the success of its multi-year margin enhancement initiatives, management raised gross margin guidance, highlighting continued improvement in profitability.
The positive consumer response to its new Sun Cruiser innovation and solid first-half earnings performance reinforce confidence in achieving full-year financial targets.
The leading craft brewer reported second-quarter earnings per share of $5.45, surpassing the Zacks Consensus Estimate of $4.37 per share and improving 241% year over year.
The Boston Beer Company, Inc. Price, Consensus and EPS Surprise
Net revenues of $587.9 million rose 1.5% from the prior-year quarter and missed the Zacks Consensus Estimate of $597 million. The increase can be attributed to higher pricing and and favorable product mix, somewhat offset by lower volumes. Excluding excise taxes, the top line grew 1.8% year over year to $625.4 million.
Shares of Boston Beer rallied 7% in yesterday’s after-hours trading session following the upbeat second-quarter 2025 earnings report. This Zacks Rank #4 (Sell) company’s shares have gained 15% as compared to the industry’s 5% growth in the past month.
SAM Price Performance In The Past Month
Image Source: Zacks Investment Research
Analyzing SAM’s Quarterly Performance
Boston Beer reported a 0.8% year-over-year decline in shipment volume to 2.1 million barrels in the second quarter. The decline mainly resulted from lower volumes of Truly Hard Seltzer and Samuel Adams, partially offset by growth in Sun Cruiser and Dogfish Head brands. Meanwhile, depletions fell 5% year over year.
Year-to-date depletions through the 26 weeks ended June 28, 2025, are estimated to have declined 3% year over year.
As of June 29, 2025, distributor inventory averaged nearly four and a half weeks on hand compared with five weeks on hand as of the end of first-quarter 2025 and about three and a half weeks on hand at the end of second-quarter 2025. This indicates that inventory is at appropriate levels for each of its brands.
The gross profit improved 9.8% year over year to $292.5 million, whereas the gross margin expanded 380 basis points (bps) to 49.8% from 46% in the year-ago quarter. The gross margin improved, mainly driven by brewery efficiencies, procurement savings, price increases and a favorable product mix. These gains were partially offset by higher inflationary and tariff costs. The company’s gross margin included $5.7 million of shortfall fees and $2.6 million of non-cash expenses related to third-party production prepayments, impacting the gross margin negatively by 141 bps in the second quarter.
Advertising, promotional and selling expenses rose 10.7% in the second quarter to $15.5 million, owing to higher investments in media . General and administrative expenses declined 4.7% year over year to $2.3 million, primarily driven by lower salaries and benefits, including reduced incentive compensation.
SAM’s Financial Snapshot
As of June 28, 2025, Boston Beer had cash and cash equivalents of $212.4 million and total stockholders’ equity of $912.4 million. The company currently has $150 million in its line of credit, which, along with its cash position, will be sufficient to meet cash requirements.
SAM repurchased Class A common stocks worth $99.2 million in second-quarter 2025 and $11.3 million from June 30, 2025, through July 18, 2025. This brings the company’s total year-to-date share repurchases to $110.5 million. As of July 18, 2025, it had $317 million remaining under its current share repurchase authorization of $1.6 billion.
Expectations From Boston Beer in 2025
SAM has updated its full-year 2025 financial guidance and revised its estimate of the financial to exclude any potential impacts of tariffs. The updated outlook reflects lower volume expectations due to macroeconomic pressures on industry demand, offset by higher gross margin expectations resulting from stronger-than-anticipated brewery efficiencies in the first half of the year. While earnings per diluted share guidance remains unchanged from an operational standpoint, it now includes an updated estimated negative tariff impact of $0.96 to $1.28 per share, lower than the previously excluded estimate of $1.25 to $1.90 per share.
Depletions and shipments are expected to be down in the high single digits to down in the low single digits for 2025, as compared to down low single digits to up low single digits mentioned earlier. Price increases remain unchanged at 1% to 2%. The company anticipates that the current trend of shipments exceeding depletions will reverse in the second half of 2025. Due to the seasonal nature of the business, the third quarter typically sees significantly higher volume than the fourth. In the prior year, SAM was unable to fully meet demand in the second quarter, resulting in a catch-up of shipments during the third quarter. Given this dynamic and the tough comparison to the prior year, the company expects the bulk of the 2025 shipment reversal to take place in the third quarter, with shipment declines projected in the low- to mid-teens range.
SAM anticipates a gross margin of 46-47.3%, including tariffs for 2025, up from the previous estimate of 44% to 46.5%. Gross margin excluding tariffs is now projected to be 47% to 48%, up from the earlier range of 45% to 47%. The company's gross margin guidance includes the negative impacts of 100-140 bps from shortfall fees and non-cash expenses of third-party production pre-payments.
Advertising, promotional and selling expenses are anticipated to increase $30-$50 million. This projection does not include any change in freight expenses for the shipment of products to distributors. The company anticipates an effective tax rate of 29-30% for 2025. It envisions that GAAP earnings per share guidance, including tariffs, has increased to a range of $6.72 to $9.54, compared to the prior $6.10 to $9.25, while EPS excluding tariffs remains steady at $8.00 to $10.50.
Capital spending expectations have been reduced to $70 to $90 million, down from the prior range of $90 to $110 million, reflecting a more disciplined investment approach.
Stocks to Consider
We have highlighted three top-ranked stocks from the Consumer Staples sector, namely Vita Coco Company (COCO - Free Report) , Zevia (ZVIA - Free Report) and Diageo (DEO - Free Report) .
Vita Coco produces and sells coconut water products under the Vita Coco brand name in the United States, Canada, Europe, the Middle East, Africa and the Asia Pacific. The company currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for COCO’s 2025 earnings and sales indicates growth of 12.5% and 6.5%, respectively, from the previous year’s reported figures. Vita Coco has a trailing four-quarter average earnings surprise of 28.2%.
Zevia is focused on addressing health challenges resulting from excess sugar consumption by offering a portfolio of zero-sugar, zero-calorie, naturally sweetened beverages. It presently has a Zacks Rank #2.
The Zacks Consensus Estimate for Zevia’s 2025 sales and EPS indicates growth of 3.4% and 48.4%, respectively, from the prior-year reported levels. ZVIA delivered a trailing four-quarter earnings surprise of 33.6%, on average.
Diageo is involved in producing, distilling, brewing, bottling, packaging and distributing spirits, wine and beer. DEO currently has a Zacks Rank #2.
The Zacks Consensus Estimate for Diageo’s 2025 sales implies growth of 0.7% from the previous year’s reported numbers. Meanwhile, DEO’s earnings estimate indicates a year-over-year decline of 2.3%.
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Boston Beer Q2 Earnings Beat & Raised '25 Outlook Fuel Stock Gains
Key Takeaways
The Boston Beer Company, Inc. (SAM - Free Report) posted second-quarter 2025 results, wherein the bottom line beat the Zacks Consensus Estimate and improved year over year. Meanwhile, the top line missed the Zacks Consensus Estimate but exceeded year over year. Despite industry-wide volume pressures, the company showcased resilience in the second quarter of 2025.
Depletions declined 5% due to economic uncertainty and unfavorable weather during key selling weeks. Nevertheless, SAM managed to grow market share in the first half, driven by its diversified portfolio of iconic brands, a robust innovation pipeline and a high-performing sales force. Encouraged by the success of its multi-year margin enhancement initiatives, management raised gross margin guidance, highlighting continued improvement in profitability.
The positive consumer response to its new Sun Cruiser innovation and solid first-half earnings performance reinforce confidence in achieving full-year financial targets.
The leading craft brewer reported second-quarter earnings per share of $5.45, surpassing the Zacks Consensus Estimate of $4.37 per share and improving 241% year over year.
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
Net revenues of $587.9 million rose 1.5% from the prior-year quarter and missed the Zacks Consensus Estimate of $597 million. The increase can be attributed to higher pricing and and favorable product mix, somewhat offset by lower volumes. Excluding excise taxes, the top line grew 1.8% year over year to $625.4 million.
Shares of Boston Beer rallied 7% in yesterday’s after-hours trading session following the upbeat second-quarter 2025 earnings report. This Zacks Rank #4 (Sell) company’s shares have gained 15% as compared to the industry’s 5% growth in the past month.
SAM Price Performance In The Past Month
Image Source: Zacks Investment Research
Analyzing SAM’s Quarterly Performance
Boston Beer reported a 0.8% year-over-year decline in shipment volume to 2.1 million barrels in the second quarter. The decline mainly resulted from lower volumes of Truly Hard Seltzer and Samuel Adams, partially offset by growth in Sun Cruiser and Dogfish Head brands. Meanwhile, depletions fell 5% year over year.
Year-to-date depletions through the 26 weeks ended June 28, 2025, are estimated to have declined 3% year over year.
As of June 29, 2025, distributor inventory averaged nearly four and a half weeks on hand compared with five weeks on hand as of the end of first-quarter 2025 and about three and a half weeks on hand at the end of second-quarter 2025. This indicates that inventory is at appropriate levels for each of its brands.
The gross profit improved 9.8% year over year to $292.5 million, whereas the gross margin expanded 380 basis points (bps) to 49.8% from 46% in the year-ago quarter. The gross margin improved, mainly driven by brewery efficiencies, procurement savings, price increases and a favorable product mix. These gains were partially offset by higher inflationary and tariff costs. The company’s gross margin included $5.7 million of shortfall fees and $2.6 million of non-cash expenses related to third-party production prepayments, impacting the gross margin negatively by 141 bps in the second quarter.
Advertising, promotional and selling expenses rose 10.7% in the second quarter to $15.5 million, owing to higher investments in media . General and administrative expenses declined 4.7% year over year to $2.3 million, primarily driven by lower salaries and benefits, including reduced incentive compensation.
SAM’s Financial Snapshot
As of June 28, 2025, Boston Beer had cash and cash equivalents of $212.4 million and total stockholders’ equity of $912.4 million. The company currently has $150 million in its line of credit, which, along with its cash position, will be sufficient to meet cash requirements.
SAM repurchased Class A common stocks worth $99.2 million in second-quarter 2025 and $11.3 million from June 30, 2025, through July 18, 2025. This brings the company’s total year-to-date share repurchases to $110.5 million. As of July 18, 2025, it had $317 million remaining under its current share repurchase authorization of $1.6 billion.
Expectations From Boston Beer in 2025
SAM has updated its full-year 2025 financial guidance and revised its estimate of the financial to exclude any potential impacts of tariffs. The updated outlook reflects lower volume expectations due to macroeconomic pressures on industry demand, offset by higher gross margin expectations resulting from stronger-than-anticipated brewery efficiencies in the first half of the year. While earnings per diluted share guidance remains unchanged from an operational standpoint, it now includes an updated estimated negative tariff impact of $0.96 to $1.28 per share, lower than the previously excluded estimate of $1.25 to $1.90 per share.
Depletions and shipments are expected to be down in the high single digits to down in the low single digits for 2025, as compared to down low single digits to up low single digits mentioned earlier. Price increases remain unchanged at 1% to 2%. The company anticipates that the current trend of shipments exceeding depletions will reverse in the second half of 2025. Due to the seasonal nature of the business, the third quarter typically sees significantly higher volume than the fourth. In the prior year, SAM was unable to fully meet demand in the second quarter, resulting in a catch-up of shipments during the third quarter. Given this dynamic and the tough comparison to the prior year, the company expects the bulk of the 2025 shipment reversal to take place in the third quarter, with shipment declines projected in the low- to mid-teens range.
SAM anticipates a gross margin of 46-47.3%, including tariffs for 2025, up from the previous estimate of 44% to 46.5%. Gross margin excluding tariffs is now projected to be 47% to 48%, up from the earlier range of 45% to 47%. The company's gross margin guidance includes the negative impacts of 100-140 bps from shortfall fees and non-cash expenses of third-party production pre-payments.
Advertising, promotional and selling expenses are anticipated to increase $30-$50 million. This projection does not include any change in freight expenses for the shipment of products to distributors. The company anticipates an effective tax rate of 29-30% for 2025. It envisions that GAAP earnings per share guidance, including tariffs, has increased to a range of $6.72 to $9.54, compared to the prior $6.10 to $9.25, while EPS excluding tariffs remains steady at $8.00 to $10.50.
Capital spending expectations have been reduced to $70 to $90 million, down from the prior range of $90 to $110 million, reflecting a more disciplined investment approach.
Stocks to Consider
We have highlighted three top-ranked stocks from the Consumer Staples sector, namely Vita Coco Company (COCO - Free Report) , Zevia (ZVIA - Free Report) and Diageo (DEO - Free Report) .
Vita Coco produces and sells coconut water products under the Vita Coco brand name in the United States, Canada, Europe, the Middle East, Africa and the Asia Pacific. The company currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for COCO’s 2025 earnings and sales indicates growth of 12.5% and 6.5%, respectively, from the previous year’s reported figures. Vita Coco has a trailing four-quarter average earnings surprise of 28.2%.
Zevia is focused on addressing health challenges resulting from excess sugar consumption by offering a portfolio of zero-sugar, zero-calorie, naturally sweetened beverages. It presently has a Zacks Rank #2.
The Zacks Consensus Estimate for Zevia’s 2025 sales and EPS indicates growth of 3.4% and 48.4%, respectively, from the prior-year reported levels. ZVIA delivered a trailing four-quarter earnings surprise of 33.6%, on average.
Diageo is involved in producing, distilling, brewing, bottling, packaging and distributing spirits, wine and beer. DEO currently has a Zacks Rank #2.
The Zacks Consensus Estimate for Diageo’s 2025 sales implies growth of 0.7% from the previous year’s reported numbers. Meanwhile, DEO’s earnings estimate indicates a year-over-year decline of 2.3%.