Boston Beer Q3 revenue falls on lower shipment, depletion volumes

The Boston Beer

Yesterday 21:25

Overview
U.S. craft brewer's Q3 revenue fell 3%, slightly missing analyst expectations
Gross margin rose to 51.7% from 50.8%, helped by product mix and price increases
Company repurchased $79.5 mln in shares year-to-date

Outlook
Boston Beer raises low end of 2026 gross margin guidance to 49%-50% from 48.5%-50%
Company now expects 2026 depletions and shipments down mid-single digits, versus prior low- to mid-single digits
Boston Beer sees 2026 non-GAAP EPS of $9.00 to $10.50, up from $8.50 to $10.50 prior

Result Drivers
VOLUME DECLINES - Co said Q3 revenue fell due to lower shipment and depletion volumes, with declines in Twisted Tea, Truly, and Samuel Adams brands partially offset by growth in Sun Cruiser and Angry Orchard
PRODUCT MIX AND PRICING - Favorable product mix and price increases partially offset lower volumes, supporting gross margin expansion
SUPPLY CHAIN IMPROVEMENTS - Co attributed improved gross margin to supply chain transformation and brewery efficiencies, per CFO Matt Murphy

Company press release: ID:nGNX92hZXs

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Slight Miss*
$520.10 mln
$522.79 mln (11 Analysts)
Q3 EPS
 
$4.21
 
Q3 Gross Margin
 
51.70%
 
*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 12 "hold" and 2 "sell" or "strong sell"
The average consensus recommendation for the brewers peer group is "hold"
Wall Street's median 12-month price target for The Boston Beer Company, Inc. is $190.00, about 4.5% above its October 21 closing price of $181.81
The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 17 three months ago

Reuters Recommended Reads
Oct 22 - Finland's Olvi Q3 sales and profit miss estimates on soft demand
Oct 21 - Heineken ordered to pay €111 million in damages, interest to Greek rival
Oct 20 - Adidas prelim Q3 operating profit rises as full-price sales support gross margin gains

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)