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Boston Beer posts Q2 EPS beat as margins rise but volumes decline
Second-quarter GAAP diluted EPS came to $4.96, and full-year non-GAAP EPS guidance stayed at $8.50 to $10.50 despite net revenue slipping 3.3% year over year.
Boston Beer reported second-quarter results on July 23, posting a modest earnings upside even as the company faced ongoing top-line volume pressure, according to Yahoo Finance.
GAAP diluted earnings per share were $4.96, above Wall Street’s $4.83 consensus, while non-GAAP diluted EPS was $3.65. The EPS beat was driven by gross margin expansion to 50.4%, up 60 basis points year over year, and a $1.31 per-share after-tax benefit from a favorable adjustment in supplier litigation.
Net revenue in the quarter was about $568.3 million, down 3.3% year over year. Depletions decreased 6%, which was better than the Street’s fear of a 9% decline, and shipment volume was approximately 2.0 million barrels, down 4.5%.
Management maintained its full-year non-GAAP EPS guidance of $8.50 to $10.50. After the results, Roth Capital cut its price target to $295 from $315 while keeping a Buy rating, and Deutsche Bank reduced its price target to $176 from $187 while holding a Hold rating.