Boston Beer (NYSE:SAM) is a Boston-based company that produces and sells alcohol beverages primarily in the United States. Alcohol consumption has varied among age demographic groups in the 21st century. For example, the baby boomer cohort were large consumers of beer, particularly among males. Meanwhile, millennials have gravitated more towards wine and spirits. These trends have presented a challenge for the beer industry as it looks to the future.
This company released its first quarter fiscal 2024 earnings after markets closed on April 25, 2024. In Q1 FY2024, Boston Beer reported that depletions were flat while shipments increased 0.9% compared to the first quarter of fiscal 2023. Sales of Twisted Tea were able to offset declines in Truly Hard Seltzer and Boston Beer’s other brands. Meanwhile, Boston Beer delivered net revenues of $426 million – up 3.9% compared to the prior year. Boston Beer reported a gross margin of 43.7% - up from 38.0% in Q1 2023. The company’s gross margin was the beneficiary of price increases.
For the full year fiscal 2024, Boston Beer is projecting depletions and shipments percentage change down low single digit to up low single digits. Moreover, it expects price increases between 1% and 2%. The company projects GAAP earnings per share (EPS) between $7.00 and $11.00, which was unchanged from its prior guidance.
Shares of Boston Beer currently possess a price-to-earnings ratio of 35. That puts this stock in favourable
