NYSE$SAM

Boston Beer Co Inc · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Reported a decrease in net revenue and gross margins.

Boston Beer reported a decrease in first quarter depletions by 7% and shipments decreased by 25.1%. Net revenue decreased by 21.1% to $430.1 million, and the company experienced a net loss of $2.0 million, a significant decrease from the previous year's net income of $65.6 million.

  • First quarter depletions decreased 7% and first quarter shipments decreased 25.1% compared to the quarter ended March 27, 2021
  • First quarter net revenue of $430.1 million decreased 21.1% compared to the net revenue realized in the first quarter of 2021
  • First quarter gross margin of 40.2% was 5.6 percentage points below the 2021 first quarter margin of 45.8%
  • First quarter net loss of $2.0 million or $0.16 per diluted share, decreased from net income of $65.6 million or $5.26 per diluted share in the first quarter of 2021.

Headline financials

Total Revenue

$430M

Previous: $545M-21.1%
EPS (adj)

-$0.16

Previous: $5.26-103.0%
Barrels Sold

1.7K

Previous: 2.3K-25.2%
Capital Expenditures

-$23.8M

Previous: -$39.3M+39.5%
Free Cash Flow

-$25.7M

Previous: $26.3M-197.9%
Net Income

-$1.96M

Previous: $65.6M-103.0%
Operating Income

-$2.15M

Previous: $76.6M-102.8%
Gross Profit

$173M

Previous: $250M-30.7%
Cash & Equivalents

$15.8M

Previous: $145M-89.1%
Total Assets

$1.39B

Previous: $1.46B-5.1%
Stock-Based Comp

$2.92M

Previous: $4.96M-41.1%

Revenue & EPS history

Boston Beer · Revenue · Quarterly

$430M

Q1 2022-21.1%vs Q1 2021
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Forward guidance

The Company currently projects full-year 2022 Non-GAAP earnings per diluted share of between $11.00 and $16.00.

Tailwinds

  • Full-year depletion and shipment growth continues to be estimated at between 4% and 10%.
  • National price increases of between 3% and 5%.
  • Gross margin of between 45% and 48%.
  • Increased investments in advertising, promotional and selling expenses of between $0 and $20 million.
  • Non-GAAP effective tax rate of approximately 26%, excluding the impact of ASU 2016-09.

Headwinds

  • This projection excludes the impact of ASU 2016-09 and is highly sensitive to changes in volume projections particularly related to the hard seltzer category and supply chain performance as well as inflationary impacts that have accelerated since we provided our last guidance.
  • The Company’s actual 2022 earnings per share could vary significantly from the current projection.
  • In the first quarter of 2022 total depletions declined 7% compared to the first quarter of 2021 and increased 38% compared to the first quarter of 2020.
  • Estimated capital spending of between $140 million and $190 million.
  • The Company is unable to reconcile the projection for its Non-GAAP effective tax rate and earnings per diluted share, excluding the impact of ASU 2016-09, because the Company is unable to predict the impact of future events outside the Company’s control, including the timing and value realized upon exercise of stock options versus the fair value of those options when granted.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

+0.1%

Avg return

Earnings day

+0.7%

Avg return

5 days after

-0.8%

Avg return

30 days after

45%

29 / 65 earnings

Positive

+24.7%

Q2 2020

Best reaction

-24.6%

Q2 2021

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.2%-12.8%-25.2%
Q4 2025-7.1%-1.9%+1.0%
Q3 2025+5.7%-3.0%-10.8%
Q1 2025+2.3%+1.4%-4.3%
Q4 2024+3.0%+5.9%+2.2%
Q3 2024-1.8%-0.9%+3.7%
Q2 2024+7.0%+2.7%+3.7%
Q1 2024-3.4%-5.1%-11.1%
Q4 2023-13.3%-15.3%-15.3%
Q3 2023-14.2%-10.3%-8.3%
Q2 2023+16.5%+16.9%+13.1%
Q1 2023+1.8%-0.2%+1.9%
Q4 2022-13.1%-14.7%-19.6%
Q3 2022+20.0%+23.8%+12.3%
Q2 2022+6.6%+7.8%+10.1%
Q1 2022-2.9%-0.4%-8.9%
Q4 2021-6.0%-10.5%-4.9%
Q3 2021+2.8%-2.2%-9.1%
Q2 2021-24.6%-23.0%-36.8%
Q1 2021+2.3%-3.2%-16.7%
Q4 2020-4.3%-11.7%-5.2%
Q3 2020+19.8%+18.2%+3.0%
Q2 2020+24.7%+23.1%+33.0%
Q1 2020+5.9%+11.3%+26.7%
Q4 2019-7.0%-4.9%-28.1%
Q3 2019-1.0%+2.4%+4.1%
Q2 2019+3.3%+0.3%+11.3%
Q1 2019+8.0%+9.5%+20.8%
Q4 2018+14.1%+13.2%+6.4%
Q3 2018-0.3%+13.7%+1.2%
Q2 2018-15.1%-15.9%-4.5%
Q1 2018-0.8%+2.7%+10.0%
Q4 2017-13.6%-12.4%-3.3%
Q3 2017-7.1%-1.1%-1.3%
Q2 2017+15.0%+18.2%+10.7%
Q1 2017-2.4%-0.1%+0.4%
Q4 2016-6.4%-6.6%-11.6%
Q3 2016+1.5%+1.6%+3.2%
Q2 2016+14.6%+10.5%+13.8%
Q1 2016-10.5%
Q4 2015-4.0%
Q3 2015-10.7%
Q2 2015-0.9%
Q1 2015-7.8%
Q4 2014-10.9%
Q3 2014+8.5%
Q2 2014+1.2%
Q1 2014-1.2%
Q4 2013+1.9%
Q3 2013-6.6%
Q2 2013+13.1%
Q1 2013-13.3%
Q4 2012-4.9%
Q3 2012+8.4%
Q2 2012+1.6%
Q1 2012+0.4%
Q1 2011+5.0%
Q3 2010-0.2%
Q4 2011-0.2%
Q1 2010-0.2%
Q4 2009-0.2%
Q2 2011-0.2%
Q3 2011+11.9%
Q4 2010-3.6%
Q2 2010-3.6%

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