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Why Boston Beer (SAM) Looks Well-Poised Before Q3 Earnings
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The Boston Beer Company, Inc. (SAM - Free Report) is scheduled to report third-quarter 2022 results on Oct 20. In the third quarter, the company is anticipated to have registered top and bottom-line growth from the prior-year quarter.
The Zacks Consensus Estimate for third-quarter earnings is pegged at $3.38 per share, suggesting 13.8% growth from the year-earlier quarter's reported figure. The consensus mark has moved down 2.9% in the past seven days. For quarterly revenues, the Zacks Consensus Estimate is pegged at $571.9 million, suggesting a 1.8% increase from the prior-year quarter’s reported number.
In the last reported quarter, the company delivered a negative earnings surprise of 18.5%. It has a trailing four-quarter negative earnings surprise of 63.9%, on average.
The Boston Beer Company, Inc. Price and EPS Surprise
Boston Beer’s robust brand portfolio and strategic initiatives are likely to have aided its performance in the to-be-reported quarter. The company’s continued focus on pricing, product innovation, growth of non-beer categories and brand development is likely to have boosted its operational performance and its position in the market. Truly has been a key growth driver for Boston Beer.
The company’s focus on innovation to revive the Truly brand and expand Twisted Tea’s potential bodes well. It is keen on bringing excitement to its core flavors through innovation. The company has been improving the Truly brand trends through a renewed focus on core business, smart brand innovation and strong distributor support and retail execution.
Apart from the latest launches, the company announced the reformulation and improvement of core Truly flavors, including the addition of real fruit juice for an even smoother, easy-to-drink and refreshing taste. These efforts are likely to have contributed to top-line gains in the to-be-reported quarter.
Moreover, the Twisted Tea brand has been driving revenue growth for the past few quarters. It contributed to the majority of top-line growth in the second quarter. The Twisted Tea brand is likely to have delivered strong growth in the third quarter, backed by improved distribution and a unique product and brand positioning that resonates with more consumers.
SAM’s commitment to the three-point growth plan — focused on reviving its Samuel Adams and Angry Orchard brands, cost-saving initiatives, and innovation — is expected to have contributed to the quarterly performance.
The company is expected to have benefited from lower operating costs, including reduced advertising, promotional and selling expenses, driven by lower brand investments, particularly in media and production.
Nonetheless, Boston Beer has been witnessing a dismal earnings trend in the past year, driven by the ongoing impacts of the slowdown in the hard seltzer business and supply-chain headwinds. Revenues have been impacted by lower production and shipment volumes due to the slowdown in growth trends for the hard seltzer category in recent quarters.
On the last reported quarter’s earnings call, management anticipated the slowed hard seltzer sales to continue to impact Truly’s performance through the rest of 2022.
Further, indirect volume adjustment costs due to the hard seltzer slowdown and higher material costs have been hurting margins. The persistence of these trends is likely to have weighed on the company’s top and bottom lines in the to-be-reported quarter. Boston Beer is expected to have been impacted by a decline in shipments in the Truly Hard Seltzer, Twisted Tea, Angry Orchard and Dogfish Head brands.
Zacks Model
Our proven model conclusively predicts 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 #2 and an Earnings ESP of +4.29%.
Other Stocks Poised to Beat Earnings Estimates
Here are some other companies you may want to consider, as our model shows that these also have the right combination of elements to post an earnings beat this season:
e.l.f. Beauty (ELF - Free Report) has an Earnings ESP of +10.00% and it currently sports a Zacks Rank #1. The company is expected to register top-line growth when it reports the third-quarter 2022 numbers. The Zacks Consensus Estimate for ELF’s quarterly revenues is pegged at $105.2 billion, which suggests growth of 14.5% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for e.l.f. Beauty’s quarterly earnings has moved up by a penny in the past seven days to 15 cents per share. However, the consensus mark suggests a 28.6% decline from the year-ago reported number. ELF has delivered an earnings beat of 77%, on average, in the trailing four quarters.
Archer Daniels Midland (ADM - Free Report) currently has an Earnings ESP of +4.06% and a Zacks Rank #3. ADM is anticipated to register top and bottom-line growth when it reports the third-quarter 2022 results. The Zacks Consensus Estimate for Archer Daniels’ quarterly revenues is pegged at $22.9 billion, indicating an improvement of 12.6% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Archer Daniels’ bottom line has moved up 3.6% in the past seven days at $1.42 per share. The consensus estimate suggests growth of 46.4% from the prior-year quarter’s reported figure. ADM has delivered an earnings beat of 20.1%, on average, in the trailing four quarters.
Kellogg's (K - Free Report) has an Earnings ESP of +2.49% and a Zacks Rank #3 at present. K is likely to register top-line growth when it reports the third-quarter 2022 numbers. The Zacks Consensus Estimate for its quarterly revenues is pegged at $3.76 billion, which suggests growth of 3.8% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Kellogg's quarterly earnings has been unchanged in the past 30 days at 96 cents per share. However, the consensus mark suggests a decline of 11.9% from the year-ago quarter’s reported number. K has delivered an earnings surprise of 13.3%, on average, in the trailing four quarters.
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Why Boston Beer (SAM) Looks Well-Poised Before Q3 Earnings
The Boston Beer Company, Inc. (SAM - Free Report) is scheduled to report third-quarter 2022 results on Oct 20. In the third quarter, the company is anticipated to have registered top and bottom-line growth from the prior-year quarter.
The Zacks Consensus Estimate for third-quarter earnings is pegged at $3.38 per share, suggesting 13.8% growth from the year-earlier quarter's reported figure. The consensus mark has moved down 2.9% in the past seven days. For quarterly revenues, the Zacks Consensus Estimate is pegged at $571.9 million, suggesting a 1.8% increase from the prior-year quarter’s reported number.
In the last reported quarter, the company delivered a negative earnings surprise of 18.5%. It has a trailing four-quarter negative earnings surprise of 63.9%, on average.
The Boston Beer Company, Inc. Price and EPS Surprise
The Boston Beer Company, Inc. price-eps-surprise | The Boston Beer Company, Inc. Quote
Key Factors to Note
Boston Beer’s robust brand portfolio and strategic initiatives are likely to have aided its performance in the to-be-reported quarter. The company’s continued focus on pricing, product innovation, growth of non-beer categories and brand development is likely to have boosted its operational performance and its position in the market. Truly has been a key growth driver for Boston Beer.
The company’s focus on innovation to revive the Truly brand and expand Twisted Tea’s potential bodes well. It is keen on bringing excitement to its core flavors through innovation. The company has been improving the Truly brand trends through a renewed focus on core business, smart brand innovation and strong distributor support and retail execution.
Apart from the latest launches, the company announced the reformulation and improvement of core Truly flavors, including the addition of real fruit juice for an even smoother, easy-to-drink and refreshing taste. These efforts are likely to have contributed to top-line gains in the to-be-reported quarter.
Moreover, the Twisted Tea brand has been driving revenue growth for the past few quarters. It contributed to the majority of top-line growth in the second quarter. The Twisted Tea brand is likely to have delivered strong growth in the third quarter, backed by improved distribution and a unique product and brand positioning that resonates with more consumers.
SAM’s commitment to the three-point growth plan — focused on reviving its Samuel Adams and Angry Orchard brands, cost-saving initiatives, and innovation — is expected to have contributed to the quarterly performance.
The company is expected to have benefited from lower operating costs, including reduced advertising, promotional and selling expenses, driven by lower brand investments, particularly in media and production.
Nonetheless, Boston Beer has been witnessing a dismal earnings trend in the past year, driven by the ongoing impacts of the slowdown in the hard seltzer business and supply-chain headwinds. Revenues have been impacted by lower production and shipment volumes due to the slowdown in growth trends for the hard seltzer category in recent quarters.
On the last reported quarter’s earnings call, management anticipated the slowed hard seltzer sales to continue to impact Truly’s performance through the rest of 2022.
Further, indirect volume adjustment costs due to the hard seltzer slowdown and higher material costs have been hurting margins. The persistence of these trends is likely to have weighed on the company’s top and bottom lines in the to-be-reported quarter. Boston Beer is expected to have been impacted by a decline in shipments in the Truly Hard Seltzer, Twisted Tea, Angry Orchard and Dogfish Head brands.
Zacks Model
Our proven model conclusively predicts 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 #2 and an Earnings ESP of +4.29%.
Other Stocks Poised to Beat Earnings Estimates
Here are some other companies you may want to consider, as our model shows that these also have the right combination of elements to post an earnings beat this season:
e.l.f. Beauty (ELF - Free Report) has an Earnings ESP of +10.00% and it currently sports a Zacks Rank #1. The company is expected to register top-line growth when it reports the third-quarter 2022 numbers. The Zacks Consensus Estimate for ELF’s quarterly revenues is pegged at $105.2 billion, which suggests growth of 14.5% from the prior-year quarter’s reported figure.
You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for e.l.f. Beauty’s quarterly earnings has moved up by a penny in the past seven days to 15 cents per share. However, the consensus mark suggests a 28.6% decline from the year-ago reported number. ELF has delivered an earnings beat of 77%, on average, in the trailing four quarters.
Archer Daniels Midland (ADM - Free Report) currently has an Earnings ESP of +4.06% and a Zacks Rank #3. ADM is anticipated to register top and bottom-line growth when it reports the third-quarter 2022 results. The Zacks Consensus Estimate for Archer Daniels’ quarterly revenues is pegged at $22.9 billion, indicating an improvement of 12.6% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Archer Daniels’ bottom line has moved up 3.6% in the past seven days at $1.42 per share. The consensus estimate suggests growth of 46.4% from the prior-year quarter’s reported figure. ADM has delivered an earnings beat of 20.1%, on average, in the trailing four quarters.
Kellogg's (K - Free Report) has an Earnings ESP of +2.49% and a Zacks Rank #3 at present. K is likely to register top-line growth when it reports the third-quarter 2022 numbers. The Zacks Consensus Estimate for its quarterly revenues is pegged at $3.76 billion, which suggests growth of 3.8% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Kellogg's quarterly earnings has been unchanged in the past 30 days at 96 cents per share. However, the consensus mark suggests a decline of 11.9% from the year-ago quarter’s reported number. K has delivered an earnings surprise of 13.3%, on average, in the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.