NYSE$SAM

Boston Beer Co Inc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Boston Beer's second quarter 2020 results were reported, featuring revenue growth and increased net income.

Boston Beer reported a strong second quarter with a 42% increase in net revenue to $452.1 million and a 116% increase in net income to $60.1 million, driven by shipment growth of 39.8%.

  • Depletions increased 46%, or 42% excluding the addition of Dogfish Head brands.
  • Shipments increased 39.8%, or 35.3% excluding the addition of Dogfish Head brands.
  • Gross margin was 46.4%, a decrease from 49.9% in the comparable period of 2019.
  • Full-year 2020 Non-GAAP earnings per diluted share is now estimated at between $11.70 and $12.70.

Headline financials

Total Revenue

$452M

Previous: $318M+42.0%
EPS (adj)

$4.88

Previous: $2.34+108.5%
Barrels Sold

1.9M

No prior period
Capital Expenditures

-$60.1M

Previous: -$44.6M-34.8%
Free Cash Flow

$69K

Previous: -$16.7M+100.4%
Net Income

$60.1M

Previous: $27.9M+115.9%
Operating Income

$78.8M

Previous: $37.9M+107.7%
Gross Profit

$210M

Previous: $159M+31.8%
Cash & Equivalents

$86.7M

Previous: $3.02M+2774.2%
Total Assets

$1.21B

Previous: $813M+48.6%
Stock-Based Comp

$4.54M

Previous: $3.75M+21.1%

Revenue & EPS history

Boston Beer · Revenue · Quarterly

$452M

Q2 2020+42%vs Q2 2019
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Forward guidance

The Company currently projects full year 2020 earnings per diluted share to be between $11.70 and $12.70. Depletions and shipments percentage increase of between 27% and 35% of which between 1% and 2% of this growth is due to the addition of the Dogfish Head brands.

Tailwinds

  • Depletions and shipments percentage increase of between 27% and 35%
  • National price increases of between 1% and 2%.
  • Gross margin of between 46% and 48%.
  • Increased investment in advertising, promotional and selling expenses of between $70 million and $80 million.
  • Estimated capital spending of between $180 million and $200 million, which could be higher, if deemed necessary to meet future growth.

Headwinds

  • The Company’s actual 2020 earnings per share could vary significantly from the current projection.
  • This does not include any changes in freight costs for the shipment of products to the Company’s distributors.
  • Non-GAAP effective tax rate of approximately 26%, excluding the impact of ASU 2016-09.
  • Because of the uncertainty and variability of the impact of ASU 2016-09, the Company is unable to provide, without unreasonable effort, a reconciliation of these Non-GAAP measures on a forward-looking basis.
  • We have been experiencing out of stocks and we expect wholesaler inventories to remain very tight for the rest of the summer.

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 Q2 2020

Historical avgQ2 2020

+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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro