NYSE$SAM

Boston Beer Co Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Reported financial results with a net loss due to hard seltzer slowdown.

Boston Beer reported a net loss for Q3 2021, primarily due to costs associated with the slowdown in the hard seltzer category, despite an increase in net revenue. The company is addressing inventory issues and expects continued growth in the 'Beyond Beer' market.

  • Third quarter depletions increased 11% and shipments increased 11.2% compared to the prior year.
  • Third quarter net revenue increased 14.0% compared to the prior year, reaching $561.6 million.
  • The company experienced a third quarter net loss of $58.4 million, or $4.76 per diluted share.
  • The net loss was primarily due to direct and indirect volume adjustment costs of $133.0 million related to slower than anticipated hard seltzer growth.

Headline financials

Total Revenue

$562M

Previous: $493M+14.0%
EPS (adj)

$2.97

Previous: $6.51-54.4%
Capital Expenditures

-$121M

Previous: -$100M-20.5%
Free Cash Flow

-$179M

Previous: -$19.6M-816.1%
Net Income

-$58.4M

Previous: $80.8M-172.3%
Operating Income

-$75.8M

Previous: $102M-174.4%
Gross Profit

$173M

Previous: $241M-28.2%
Cash & Equivalents

$86.5M

Previous: $157M-44.9%
Total Assets

$1.46B

Previous: $1.31B+11.5%
Stock-Based Comp

$3.71M

Previous: $3.63M+2.2%

Revenue & EPS history

Boston Beer · Revenue · Quarterly

$562M

Q3 2021+14%vs Q3 2020
Beat estimate in 8 of 16 quarters(50%)
ActualEstimate

Forward guidance

The Company currently projects full year 2021 GAAP earnings per diluted share to be between $2.00 and $6.00, primarily as a result of slowing hard seltzer category growth and related inventory write-offs, contract termination fees, equipment impairments, absorption impacts, downtime charges, and increased sourcing and warehousing costs.

Tailwinds

  • Depletions and shipments increase of between 18% and 22%.
  • National price increases of between 2% and 3%.
  • Gross margin of between 40% and 42%.
  • Increased investments in advertising, promotional and selling expenses of between $80 million and $100 million.
  • Estimated capital spending of between $160 million and $200 million.

Headwinds

  • Slowing hard seltzer category growth.
  • Related inventory write-offs.
  • Contract termination fees.
  • Equipment impairments, absorption impacts, downtime charges.
  • Increased sourcing and warehousing costs.

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 Q3 2021

Historical avgQ3 2021

+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