Boston Beer (SAM) Q4 Earnings Report Preview: What To Look For

Beer company Boston Beer (NYSE:SAM) will be announcing earnings results this Tuesday afternoon. Here’s what to look for.

Boston Beer missed analysts’ revenue expectations last quarter, reporting revenues of $537.5 million, down 11.2% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ gross margin estimates.

This quarter, the market is expecting Boston Beer’s revenue to decline 4% year on year, a reversal from the 2.2% increase it recorded in the same quarter last year.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Boston Beer has missed Wall Street’s revenue estimates multiple times over the last two years.

Looking at Boston Beer’s peers in the beverages, alcohol, and tobacco segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Vita Coco posted flat year-on-year revenue, beating analysts’ expectations by 6.2%, and Philip Morris reported revenues up 6.8%, in line with consensus estimates. Vita Coco traded down 8.4% following the results while Philip Morris’s stock price was unchanged.

There has been positive sentiment among investors in the beverages, alcohol, and tobacco segment, with share prices up 2.9% on average over the last month. Boston Beer is up 7.6% during the same time and is heading into earnings with an average analyst price target of $240.15 (compared to the current share price of $232).

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