Overview

* Boston Beer ( SAM ) Q3 revenue fell 11.2%, missing analyst expectations

* Net income for Q3 increased by $12.6 mln, despite revenue decline

* Company repurchased $161 mln in shares year-to-date, reflecting strong balance sheet

Outlook

* Boston Beer ( SAM ) raises 2025 gross margin guidance to 47%-48% from 46%-47.3%

* Company increases 2025 EPS guidance to $7.80-$9.80 from $6.72-$9.54

* Boston Beer ( SAM ) lowers 2025 tariff cost impact to $9-$13 mln from $15-$20 mln

Result Drivers

* BRAND PERFORMANCE - Declines in Twisted Tea, Truly Hard Seltzer, and Samuel Adams offset by growth in Sun Cruiser and Angry Orchard

* GROSS MARGIN IMPROVEMENT - Improved gross margin driven by procurement savings, brewery efficiencies, price increases, and favorable product mix

* ADVERTISING SPENDING - Increased advertising and promotional expenses due to brand media and local marketing investments

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Miss $537.50 $541.93

Revenue mln mln (10

Analysts

)

Q3 Net $46.20

Income mln

Q3 Gross 50.80%

Margin

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 11 "hold" and 2 "sell" or "strong sell"

* The average consensus recommendation for the brewers peer group is "buy."

* Wall Street's median 12-month price target for Boston Beer Company Inc ( SAM ) is $230.00, about 4.8% above its October 21 closing price of $219.01

* The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 19 three months ago

Press Release:

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(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.)