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Boston Beer Q3 Earnings Beat Estimates, Depletions Down 3% Y/Y
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Key Takeaways
Boston Beer's Q3 EPS rose 48.6% year over year to $4.25, topping the consensus estimate.
SAM's net revenues dropped 11% as lower volumes offset higher pricing and a favorable mix.
Gross margin expanded 450 bps to 50.8% on brewery efficiencies and procurement savings.
The Boston Beer Company, Inc. (SAM - Free Report) posted third-quarter 2025 results, wherein the bottom line beat the Zacks Consensus Estimate and improved year over year. Meanwhile, the top line fell year over year.
The leading craft brewer reported third-quarter earnings per share of $4.25, surpassing the Zacks Consensus Estimate of $3.78 and improving 48.6% year over year.
Net revenues of $571.5 million fell 11% from the prior-year quarter. Excluding excise taxes, the top line declined 11.2% year over year to $537.5 million. The decrease can be attributed to lower volumes, partly offset by higher pricing and a favorable product mix. The Zacks Consensus Estimate was pegged at $542 million.
This Zacks Rank #4 (Sell) company’s shares have lost 11.4% compared with the industry’s 9% decline over the past six months.
Analyzing SAM’s Quarterly Performance
Boston Beer reported a 13.7% year-over-year decline in shipment volume to 1.9 million barrels in the third quarter. The decline mainly resulted from lower volumes of Truly Hard Seltzer, Twisted Tea and Samuel Adams, partly offset by growth in Sun Cruiser and Angry Orchard brands. Meanwhile, depletions fell 3% year over year.
The Boston Beer Company, Inc. Price, Consensus and EPS Surprise
Year-to-date depletions through the 42 weeks ended Oct. 18, 2025, are anticipated to have declined about 4% year over year.
As of Sept. 27, 2025, distributor inventory was at appropriate levels, averaging nearly four and a half weeks on hand, within the company’s target wholesaler inventory levels of four to five weeks. At the end of September 2024, wholesaler inventory levels were slightly above its target at five and a half weeks.
The gross profit dipped 2.5% year over year to $273.1 million, whereas the gross margin expanded 450 basis points (bps) to 50.8% from 46.3% in the year-ago quarter. The gross margin improved, mainly driven by brewery efficiencies, procurement savings, price rises and a favorable product mix, along with a favorable comparison against increased inventory obsolescence in the previous year. These gains were partially offset by higher inflationary and tariff costs. The company’s gross margin included $1 million of shortfall fees and $1.9 million of non-cash expenses related to third-party production prepayments, negatively impacting gross margin by 54 bps in the third quarter.
Advertising, promotional and selling expenses rose 11.3% in the third quarter to $164.7 million, owing to higher investments in brand media and marketing, partly offset by lower freight costs. General and administrative expenses inched up 2.5% year over year to $44.9 million, primarily driven by higher salaries and cost benefits.
SAM’s Financial Snapshot
As of Sept. 27, 2025, Boston Beer had cash and cash equivalents of $250.5 million and total stockholders’ equity of $911 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.
During the 39-week period ended Sept. 27, 2025, and the period from Sept. 28, 2025, through Oct. 17, 2025, SAM repurchased shares of its Class A common stock worth $149.2 million and $12.1 million, respectively, for a total of $161.3 million year to date. As of Oct. 17, 2025, the company had roughly $266 million remaining on its $1.6-billion share buyback expenditure limit.
Expectations From Boston Beer in 2025
SAM has updated its 2025 financial guidance and revised its estimate of the financial impacts of the tariff programs as of Oct. 1, 2025. Due to seasonality, the fourth quarter is the company’s smallest revenue quarter with the lowest absolute gross margin of the year. Management expects deleveraged volumes in the fourth quarter with a high year-over-year shortfall in fees.
Depletions and shipments are now expected to decline in mid-single digit versus the earlier anticipation of a decline in the high single digits to down in the low single digits for 2025. Price increases remain unchanged at 1-2%. It anticipates volumes to decline mid-single digits for the year.
SAM now anticipates a gross margin of 47-48%, including tariffs for 2025, up from the previous estimate of 46-47.3%. It currently forecasts tariffs to have an unfavorable impact of $9-$13 million, hurting gross margin by 40-60 bps. The change in the tariff estimate is owing to lower-than-expected tariffs, mainly on material sources from Canada and exempt from the tariffs as U.S. MC compliant goods.
Advertising, promotional and selling expenses are currently anticipated to increase $50-$60 million compared with $30-$50 million mentioned earlier. This projection does not include any change in freight expenses for the shipment of products to distributors. The company still anticipates an effective tax rate of 29-30% for 2025. It now envisions earnings per share guidance, including tariffs, to a range of $7.80-$9.80, compared with the prior $6.72-$9.54. This now includes an updated estimated negative tariff impact of $0.60-$0.80 per share, lower than the previously excluded estimate of $0.96-$1.28 per share.
Capital spending is now forecast at $50-$70 million, down from the prior range of $70-$90 million.
The Zacks Consensus Estimate for United Natural Foods' current financial-year sales and earnings indicates growth of 2.4% and 167.6%, respectively, from the prior-year levels. UNFI delivered a trailing four-quarter earnings surprise of 416.2%, on average.
Celsius Holdings, Inc. (CELH - Free Report) , which specializes in nutritional functional foods, beverages and dietary supplements, starches and nutrition ingredients, currently sports a Zacks Rank of 1.
The Zacks Consensus Estimate for Celsius’ current financial-year earnings is expected to rise 54.3% from the corresponding year-ago reported figure. CELH delivered a trailing four-quarter earnings surprise of 5.4%, on average.
Post Holdings (POST - Free Report) , which is a consumer-packaged goods holding company, currently carries a Zacks Rank #2 (Buy). POST delivered a trailing four-quarter earnings surprise of 21.4%, on average.
The Zacks Consensus Estimate for Post Holdings’ current financial-year earnings indicates growth of 11% from the year-ago number.
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Boston Beer Q3 Earnings Beat Estimates, Depletions Down 3% Y/Y
Key Takeaways
The Boston Beer Company, Inc. (SAM - Free Report) posted third-quarter 2025 results, wherein the bottom line beat the Zacks Consensus Estimate and improved year over year. Meanwhile, the top line fell year over year.
The leading craft brewer reported third-quarter earnings per share of $4.25, surpassing the Zacks Consensus Estimate of $3.78 and improving 48.6% year over year.
Net revenues of $571.5 million fell 11% from the prior-year quarter. Excluding excise taxes, the top line declined 11.2% year over year to $537.5 million. The decrease can be attributed to lower volumes, partly offset by higher pricing and a favorable product mix. The Zacks Consensus Estimate was pegged at $542 million.
This Zacks Rank #4 (Sell) company’s shares have lost 11.4% compared with the industry’s 9% decline over the past six months.
Analyzing SAM’s Quarterly Performance
Boston Beer reported a 13.7% year-over-year decline in shipment volume to 1.9 million barrels in the third quarter. The decline mainly resulted from lower volumes of Truly Hard Seltzer, Twisted Tea and Samuel Adams, partly offset by growth in Sun Cruiser and Angry Orchard brands. Meanwhile, depletions fell 3% 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
Year-to-date depletions through the 42 weeks ended Oct. 18, 2025, are anticipated to have declined about 4% year over year.
As of Sept. 27, 2025, distributor inventory was at appropriate levels, averaging nearly four and a half weeks on hand, within the company’s target wholesaler inventory levels of four to five weeks. At the end of September 2024, wholesaler inventory levels were slightly above its target at five and a half weeks.
The gross profit dipped 2.5% year over year to $273.1 million, whereas the gross margin expanded 450 basis points (bps) to 50.8% from 46.3% in the year-ago quarter. The gross margin improved, mainly driven by brewery efficiencies, procurement savings, price rises and a favorable product mix, along with a favorable comparison against increased inventory obsolescence in the previous year. These gains were partially offset by higher inflationary and tariff costs. The company’s gross margin included $1 million of shortfall fees and $1.9 million of non-cash expenses related to third-party production prepayments, negatively impacting gross margin by 54 bps in the third quarter.
Advertising, promotional and selling expenses rose 11.3% in the third quarter to $164.7 million, owing to higher investments in brand media and marketing, partly offset by lower freight costs. General and administrative expenses inched up 2.5% year over year to $44.9 million, primarily driven by higher salaries and cost benefits.
SAM’s Financial Snapshot
As of Sept. 27, 2025, Boston Beer had cash and cash equivalents of $250.5 million and total stockholders’ equity of $911 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.
During the 39-week period ended Sept. 27, 2025, and the period from Sept. 28, 2025, through Oct. 17, 2025, SAM repurchased shares of its Class A common stock worth $149.2 million and $12.1 million, respectively, for a total of $161.3 million year to date. As of Oct. 17, 2025, the company had roughly $266 million remaining on its $1.6-billion share buyback expenditure limit.
Expectations From Boston Beer in 2025
SAM has updated its 2025 financial guidance and revised its estimate of the financial impacts of the tariff programs as of Oct. 1, 2025. Due to seasonality, the fourth quarter is the company’s smallest revenue quarter with the lowest absolute gross margin of the year. Management expects deleveraged volumes in the fourth quarter with a high year-over-year shortfall in fees.
Depletions and shipments are now expected to decline in mid-single digit versus the earlier anticipation of a decline in the high single digits to down in the low single digits for 2025. Price increases remain unchanged at 1-2%. It anticipates volumes to decline mid-single digits for the year.
SAM now anticipates a gross margin of 47-48%, including tariffs for 2025, up from the previous estimate of 46-47.3%. It currently forecasts tariffs to have an unfavorable impact of $9-$13 million, hurting gross margin by 40-60 bps. The change in the tariff estimate is owing to lower-than-expected tariffs, mainly on material sources from Canada and exempt from the tariffs as U.S. MC compliant goods.
Advertising, promotional and selling expenses are currently anticipated to increase $50-$60 million compared with $30-$50 million mentioned earlier. This projection does not include any change in freight expenses for the shipment of products to distributors. The company still anticipates an effective tax rate of 29-30% for 2025. It now envisions earnings per share guidance, including tariffs, to a range of $7.80-$9.80, compared with the prior $6.72-$9.54. This now includes an updated estimated negative tariff impact of $0.60-$0.80 per share, lower than the previously excluded estimate of $0.96-$1.28 per share.
Capital spending is now forecast at $50-$70 million, down from the prior range of $70-$90 million.
Three Stocks Looking Good
United Natural Foods (UNFI - Free Report) is a key distributor of natural, organic and specialty food and non-food products. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for United Natural Foods' current financial-year sales and earnings indicates growth of 2.4% and 167.6%, respectively, from the prior-year levels. UNFI delivered a trailing four-quarter earnings surprise of 416.2%, on average.
Celsius Holdings, Inc. (CELH - Free Report) , which specializes in nutritional functional foods, beverages and dietary supplements, starches and nutrition ingredients, currently sports a Zacks Rank of 1.
The Zacks Consensus Estimate for Celsius’ current financial-year earnings is expected to rise 54.3% from the corresponding year-ago reported figure. CELH delivered a trailing four-quarter earnings surprise of 5.4%, on average.
Post Holdings (POST - Free Report) , which is a consumer-packaged goods holding company, currently carries a Zacks Rank #2 (Buy). POST delivered a trailing four-quarter earnings surprise of 21.4%, on average.
The Zacks Consensus Estimate for Post Holdings’ current financial-year earnings indicates growth of 11% from the year-ago number.