Boston Beer Issues Q1 Figures, Says Sales Up 35% YoY
On Wednesday, Boston Beer (NYSE: SAM) reported first quarter earnings. The shares were halted ahead of the release, which is common for the stock. Shares are quiet in Wednesday's post market trading, flat from the closing price of $246.04.
Earnings per share came in at $0.62 per share, verus the $0.70 analyst estimate. Revenue was reported at $183.8 million, compared to the Street estimate of $179.14 million. Revenue increased 35 percent year over year.
The company maintained the gross margin target range of 51 and 53 percent, despite first-quarter gross margins coming in at 49 percent.
Advertising, promotional, and selling expenses increased by $17.8 million or 41 percent in the quarter, due to planned increased investments behind Boston Beer's brands.
"We are planning continued increases in investments in advertising, promotional and selling expenses behind existing brands in an attempt to maintain the momentum, as well as in innovation, commensurate with the opportunities and the increased competition that we see. We do not expect that the depletions growth rates we experienced in the first quarter will be maintained for the remainder of the year, as we face tougher comparables and the first quarter benefit from new product launches is unlikely to be replicated during the balance of 2014. Accordingly, we have not increased our estimated full year 2014 depletion growth rate,” said President and CEO Martin Roper.
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