NYSE$SAM

Boston Beer Co Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Reported financial results with revenue growth driven by pricing and strength in Twisted Tea shipments, but experienced a decline in depletions and shipments.

Boston Beer's second quarter results showed a 2.2% increase in net revenue, driven by pricing and Twisted Tea shipments, but depletions decreased by 7% and shipments declined by 1.1%. Net income decreased due to lower gross margins, partially offset by increased revenue and lower operating expenses. The company has reduced its full-year volume and earnings guidance due to a continuing decline in demand in the hard seltzer category.

  • Depletions decreased 7% and shipments declined 1.1% compared to the second quarter of 2021.
  • Net revenue increased 2.2% to $616.2 million compared to the second quarter of 2021.
  • Gross margin decreased to 43.1% from 45.7% in the second quarter of 2021.
  • Net income decreased to $53.3 million, or $4.31 per diluted share, from $59.2 million, or $4.75 per diluted share, in the second quarter of 2021.

Headline financials

Total Revenue

$616M

Previous: $603M+2.2%
EPS (adj)

$4.31

Previous: $4.75-9.3%
Capital Expenditures

-$50.8M

Previous: -$83.5M+39.2%
Free Cash Flow

$2.55M

Previous: -$24.3M+110.5%
Net Income

$53.3M

Previous: $59.2M-9.9%
Operating Income

$71.4M

Previous: $80.1M-10.9%
Gross Profit

$266M

Previous: $276M-3.6%
Cash & Equivalents

$138M

Previous: $103M+33.8%
Total Assets

$1.48B

Previous: $1.56B-5.2%
Stock-Based Comp

$4.81M

Previous: $5.33M-9.9%

Revenue & EPS history

Boston Beer · Revenue · Quarterly

$616M

Q2 2022+2.2%vs Q2 2021
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Forward guidance

The Company currently projects full-year 2022 Non-GAAP earnings per diluted share of between $6.00 and $11.00 a change from the previous estimate of between $11.00 and $16.00. The 2022 fiscal year includes 53 weeks compared to the 2021 fiscal year which included only 52 weeks.

Tailwinds

  • National price increases of between 3% and 5%.
  • The Company continues to expect to cover higher commodity costs through pricing.
  • The Company estimates the 53rd week will have a positive impact of between 1 and 1.5 percentage points on its depletions and shipments growth rates for the full year and between 4 and 6 percentage points on its depletions and shipments growth rates for the fourth quarter.

Headwinds

  • Depletions and shipments decrease of between 2% and 8% a change from the previous estimate of an increase of between 4% and 10%, the revision is driven by a change in expectations in the Company’s Truly hard seltzer business and the launch timing of Hard Mountain Dew in certain states moving into 2023.
  • Gross margin of between 43% and 45% a change from the previous estimate of between 45% and 48% due to the impact of lower volume expectations and continuing supply chain impacts.
  • Decreased investments in advertising, promotional and selling expenses of between $30 and $50 million, a change from our previous estimate of a decrease of between zero and $20 million, reflecting our reduced volume expectations.
  • Non-GAAP effective tax rate of between 26% and 27%, excluding the impact of ASU 2016-09, a change from the previous estimate of approximately 26%.
  • Estimated capital spending of between $110 million and $140 million a change from the previous estimate of between $140 million and $190 million.

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 2022

Historical avgQ2 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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