Boston Beer Stock Falls After FY21 Outlook Cut; Analysts Lower Price Target

Boston Beer Company Inc SAM has lowered its guidance for full-year 2021 on disappointing performance in 2021 due to higher-than-expected supply chain costs and lower-than-expected shipment growth for its products and gross margins.

  • For FY21, Boston Beer expects EPS to be loss $(1)- profit $1 versus prior guidance for EPS $2 - $6 and the consensus of $5.02.
  • The company sees FY21 gross margin of 38% - 40% (prior view 40% - 42%).
  • The company's 2021 projection includes depletions growth of 21% - 22%, a rise of 15% - 16% in shipments, and increased investments in advertising, promotional, and selling expenses of $85 million - $95 million. The company sees a national price increase of 2% - 3%.
  • The company's preliminary assumptions and targets for FY22 have not changed since its guidance update on October 21, 2021.
  • The company's preliminary 2022 outlook includes depletions & shipments percentage increase between mid-single digits and low double-digits.
  • It expects a gross margin of 45% - 48% and increased investments in advertising, promotional, and selling expenses of between $10 million and $30 million for FY22.
  • Stock Rating: Following the news, MKM Partners maintained a Hold rating on Boston Beer and lowered the price target to $440 from $475.
  • RBC Capital reaffirms Outperform rating but lowered the price target from $661 to $625.
  • Credit Suisse also cut the price target from $935 to $785, with an Outperform unchanged.
  • Price Action: SAM shares are down 9.40% at $443.00 during the market session on the last check Thursday.
Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Date
ticker
name
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: EarningsNewsGuidanceShort IdeasMoversTrading IdeasBriefswhy it's moving
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!