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Why Boston Beer (SAM) is Likely to Report Earnings Beat in Q4
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The Boston Beer Company, Inc. (SAM - Free Report) is scheduled to report fourth-quarter 2022 results on Feb 15. In the fourth quarter, the company is anticipated to have registered top and bottom-line growth from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 72 cents per share, suggesting 900% growth from the year-earlier quarter's reported figure. The consensus mark has moved up 12.5% in the past seven days. For quarterly revenues, the Zacks Consensus Estimate is pegged at $402 million, suggesting a 15.5% increase from the prior-year quarter’s reported number.
In the last reported quarter, the company delivered an earnings surprise of 20.9%. It has a trailing four-quarter negative earnings surprise of 52.1%, 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 position in the market. SAM's focus on innovation to revive the Truly brand and expand Twisted Tea’s potential bodes well.
Boston Beer has been witnessing momentum on strong shipment and depletion growth, excluding the Truly brand. A strong pricing performance across the portfolio, continued growth in depletions and shipments for the Twisted Tea brand, and progress in Hard Mountain Dew are likely to have boosted the company’s fourth-quarter performance.
The company’s Twisted Tea brand has been driving most growth of Boston Beer. Being one of the fastest-growing top 20 brands in all beer for the past 12 months, Twisted Tea grew in double digits and emerged as the number one in FMB in the third quarter by growing 4.3 share points. Improved distribution of 12 packs, and a unique product and brand positioning that resonates well with consumers are expected to have continued driving Boston Beer’s top line in the to-be-reported quarter.
SAM’s commitment to the three-point growth plan — focus 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.
However, depletions continue to be hurt by the slowdown in the hard seltzer business and supply-chain woes. On the last reported quarter’s earnings call, management noted that slowed hard seltzer sales mainly impacted the company’s Truly hard seltzer performance, which it anticipated to continue through the rest of 2022.
Higher material and packaging costs and elevated inventory obsolescence costs and returns are expected to have partly hurt gross margin growth in the to-be-reported quarter.
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 #3 and an Earnings ESP of +49.17%.
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:
Inter Parfums (IPAR - Free Report) has an Earnings ESP of +13.33% and currently carries a Zacks Rank of 2. The company is likely to register top and bottom-line growth when it reports fourth-quarter 2022 results. The consensus mark for IPAR’s quarterly revenues is pegged at $311.5 million, which suggests 47.8% growth from the figure reported in the prior-year quarter.
The consensus mark for Inter Parfums’ quarterly earnings has moved up by a penny in the past 30 days to 30 cents per share. The consensus estimate for IPAR’s fourth-quarter earnings suggests growth of 850% from the year-ago quarter’s reported figure.
Molson Coors (TAP - Free Report) currently has an Earnings ESP of +0.20% and a Zacks Rank of 3. The company is likely to register increases in the top and bottom lines when it reports fourth-quarter 2022 results. The Zacks Consensus Estimate for TAP’s quarterly earnings has moved up by a penny in the past 30 days to $1.06 per share. The consensus estimate indicates growth of 30.9% from the year-ago quarter's loss per share of 9 cents.
Molson Coors’ top line is expected to have risen year over year. The Zacks Consensus Estimate for TAP’s quarterly revenues is pegged at $2.67 billion, suggesting growth of 1.9% from the figure reported in the prior-year quarter. TAP has delivered an earnings surprise of 12.3%, on average, in the trailing four quarters.
Kraft Heinz (KHC - Free Report) currently has an Earnings ESP of +0.52% and a Zacks Rank of 3. The company is likely to register an increase in the top line when it reports fourth-quarter 2022 results. The Zacks Consensus Estimate for quarterly revenues is pegged at $7.2 billion, which suggests a rise of 7% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Kraft Heinz’s quarterly earnings has moved down by a penny to 77 cents per share in the past 30 days. The consensus mark for KHC suggests a 2.5% decline from the year-ago quarter’s reported number. KHC has delivered an earnings beat of 15.5%, on average, in the trailing four quarters.
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Why Boston Beer (SAM) is Likely to Report Earnings Beat in Q4
The Boston Beer Company, Inc. (SAM - Free Report) is scheduled to report fourth-quarter 2022 results on Feb 15. In the fourth quarter, the company is anticipated to have registered top and bottom-line growth from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 72 cents per share, suggesting 900% growth from the year-earlier quarter's reported figure. The consensus mark has moved up 12.5% in the past seven days. For quarterly revenues, the Zacks Consensus Estimate is pegged at $402 million, suggesting a 15.5% increase from the prior-year quarter’s reported number.
In the last reported quarter, the company delivered an earnings surprise of 20.9%. It has a trailing four-quarter negative earnings surprise of 52.1%, 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 position in the market. SAM's focus on innovation to revive the Truly brand and expand Twisted Tea’s potential bodes well.
Boston Beer has been witnessing momentum on strong shipment and depletion growth, excluding the Truly brand. A strong pricing performance across the portfolio, continued growth in depletions and shipments for the Twisted Tea brand, and progress in Hard Mountain Dew are likely to have boosted the company’s fourth-quarter performance.
The company’s Twisted Tea brand has been driving most growth of Boston Beer. Being one of the fastest-growing top 20 brands in all beer for the past 12 months, Twisted Tea grew in double digits and emerged as the number one in FMB in the third quarter by growing 4.3 share points. Improved distribution of 12 packs, and a unique product and brand positioning that resonates well with consumers are expected to have continued driving Boston Beer’s top line in the to-be-reported quarter.
SAM’s commitment to the three-point growth plan — focus 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.
However, depletions continue to be hurt by the slowdown in the hard seltzer business and supply-chain woes. On the last reported quarter’s earnings call, management noted that slowed hard seltzer sales mainly impacted the company’s Truly hard seltzer performance, which it anticipated to continue through the rest of 2022.
Higher material and packaging costs and elevated inventory obsolescence costs and returns are expected to have partly hurt gross margin growth in the to-be-reported quarter.
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 #3 and an Earnings ESP of +49.17%.
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:
Inter Parfums (IPAR - Free Report) has an Earnings ESP of +13.33% and currently carries a Zacks Rank of 2. The company is likely to register top and bottom-line growth when it reports fourth-quarter 2022 results. The consensus mark for IPAR’s quarterly revenues is pegged at $311.5 million, which suggests 47.8% growth from the figure reported in the prior-year quarter.
You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus mark for Inter Parfums’ quarterly earnings has moved up by a penny in the past 30 days to 30 cents per share. The consensus estimate for IPAR’s fourth-quarter earnings suggests growth of 850% from the year-ago quarter’s reported figure.
Molson Coors (TAP - Free Report) currently has an Earnings ESP of +0.20% and a Zacks Rank of 3. The company is likely to register increases in the top and bottom lines when it reports fourth-quarter 2022 results. The Zacks Consensus Estimate for TAP’s quarterly earnings has moved up by a penny in the past 30 days to $1.06 per share. The consensus estimate indicates growth of 30.9% from the year-ago quarter's loss per share of 9 cents.
Molson Coors’ top line is expected to have risen year over year. The Zacks Consensus Estimate for TAP’s quarterly revenues is pegged at $2.67 billion, suggesting growth of 1.9% from the figure reported in the prior-year quarter. TAP has delivered an earnings surprise of 12.3%, on average, in the trailing four quarters.
Kraft Heinz (KHC - Free Report) currently has an Earnings ESP of +0.52% and a Zacks Rank of 3. The company is likely to register an increase in the top line when it reports fourth-quarter 2022 results. The Zacks Consensus Estimate for quarterly revenues is pegged at $7.2 billion, which suggests a rise of 7% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Kraft Heinz’s quarterly earnings has moved down by a penny to 77 cents per share in the past 30 days. The consensus mark for KHC suggests a 2.5% decline from the year-ago quarter’s reported number. KHC has delivered an earnings beat of 15.5%, on average, in the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.