Beer company Boston Beer (NYSE: SAM) will be announcing earnings results this Thursday after the bell. Here’s what to expect.
Boston Beer met analysts’ revenue expectations last quarter, reporting revenues of $433.9 million, down 4.4% year on year. It was a softer quarter for the company, with a significant miss of analysts’ EPS estimates and full-year EPS guidance missing analysts’ expectations.
Is Boston Beer a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Boston Beer’s revenue to decline 3.1% year on year, a reversal from the 1.5% 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 will 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 consumer staples segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Constellation Brands’s revenues decreased 3.3% year on year, beating analysts’ expectations by 1.6%, and WD-40 reported revenues up 24.3%, topping estimates by 12.9%. Constellation Brands traded down 1.6% following the results while WD-40 was up 10.6%.
Read our full analysis of Constellation Brands’s results here and WD-40’s results here.
There has been positive sentiment among investors in the consumer staples segment, with share prices up 8.1% on average over the last month. Boston Beer is down 3.8% during the same time and is heading into earnings with an average analyst price target of $217.24 (compared to the current share price of $170.85).
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