Back to top

Image: Bigstock

Boston Beer (SAM) to Report Q4 Earnings: What's in Store?

Read MoreHide Full Article

The Boston Beer Company, Inc. SAM is slated to report fourth-quarter 2019 results on Feb 19. In the last reported quarter, the company delivered a positive earnings surprise of 28.3%. Moreover, its bottom line beat the Zacks Consensus Estimate over the trailing four quarters, delivering average surprise of nearly 42%.

The Zacks Consensus Estimate for fourth-quarter earnings is pegged at $1.42, implying a 22.8% decline from the year-earlier quarter's reported figure. Notably, the consensus mark has been unchanged over the past 30 days. For quarterly revenues, the Zacks Consensus Estimate stands at $277.1 million, suggesting 23% growth from the prior-year quarter reported figure.

Factors at Play

Boston Beer’s top line has been benefiting from sturdy depletions growth, improvement in shipment volumes and efforts to innovate brands. The company’s depletions have been robust on increases in its Truly Hard Seltzer and Twisted Tea brands. Particularly, it is expected to have gained from increased investments in the Truly brand, which has been bolstering its position in the fast-growing hard seltzer category.

The Boston Beer Company, Inc. Price and EPS Surprise

 

The Boston Beer Company, Inc. Price and EPS Surprise

The Boston Beer Company, Inc. price-eps-surprise | The Boston Beer Company, Inc. Quote

Moreover, major innovations, quality of products and strong brands alongside solid sales execution and support from distributors have collectively been aiding depletion. Also, efforts to manage inventory levels in the wake of increased customer demand are likely to have led to continued rise in shipments in the fourth quarter.

Additionally, the company’s commitment toward reviving its Samuel Adams and Angry Orchard brands, cost-saving initiatives, and innovation should have bolstered its performance.

However, incremental costs for the use of third-party breweries and introduction of variety packs have been denting gross margins. Additionally, higher advertising, promotional and selling expenses along with increased general and administrative costs are expected to have remained a threat to its overall profitability.

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. 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 #1 and an Earnings ESP of 0.00%.

Stocks Likely to Deliver Earnings Beat

Here are some companies that you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:

Coca Cola Femsa S.A.B. de C.V. (KOF - Free Report) has an Earnings ESP of +5.47% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Monster Beverage Corporation MNST has an Earnings ESP of +3.38% and a Zacks Rank #2.

The J. M. Smucker Company SJM presently has an Earnings ESP of +0.39% and a Zacks Rank #3.

Breakout Biotech Stocks with Triple-Digit Profit Potential

The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.

Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.

See these 7 breakthrough stocks now>>


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


Coca Cola Femsa S.A.B. de C.V. (KOF) - free report >>