Seeking Alpha

Boston Beer Co. (SAM)

  • Wed, Feb. 25, 12:48 PM
  • Tue, Feb. 24, 5:39 PM
    • Top gainers, as of 5:15 p.m.: BNFT +30.0%. RUBI +13.2%. ZAGG +9.9%. NKTR +9.4%. FLTX +7.4%.
    • Top losers, as of 5:15 p.m.: SLCA -11.7%. LC -10.7%. DWA -9.1%. SAM -8.0%. HPQ -6.5%.
  • Tue, Feb. 24, 5:26 PM
    • In addition to missing Q4 revenue estimates (while beating on EPS), Boston Beer Co. (NYSE:SAM) is guiding for 2015 EPS of $7.10-$7.50, below a $7.96 consensus. Depletions and shipments are expected to rise 8%-12%, and gross margin to be in a range of 51%-53% (compares with 2014's 51.5%).
    • CEO Martin Roper: "In the fourth quarter we had lower sales and marketing spending and higher shipments than expected, which resulted in higher earnings than anticipated.  Looking forward, we are excited, but expect the competitive environment to be tougher. We therefore anticipate the need to increase investing in advertising, promotional and selling expenses..."
    • The Sam Adams maker's depletions rose 13% Y/Y in Q4, a slowdown from Q3's 21%. As of Feb. 14, depletions were up 12% Y/Y in 2015.
    • Gross margin slipped to 50% from 51% a year ago, while ad, promotional, and selling expenses were flat. For the whole of 2014, capex totaled $151.8M. It's expected to fall to $80M-$110M in 2015.
    • Shares have fallen to $280.00 AH.
    • Q4 results, PR
  • Tue, Feb. 24, 4:26 PM
    • Boston Beer (NYSE:SAM): Q4 EPS of $1.40 beats by $0.03.
    • Revenue of $217.82M (+6.1% Y/Y) misses by $18.14M.
    • Shares -5.06%.
    • Press Release
    | Comment!
  • Mon, Feb. 23, 5:35 PM
  • Sat, Feb. 14, 10:13 AM
    • Craft soda is starting to become a trend to watch closely, according to industry insiders.
    • Though still accounting for only ~1% of the total U.S. soda market, major retail chains have increasingly been willing to bet on local craft brands in store aisles.
    • The craft craze is old news for the beer industry where coming-of-age millennials buy craft/local beers at a 50% higher rate than brand-loyal older generations. Fading stars such as Budweiser and Bud Light are testament to the impact of the millennial paradigm.
    • The craft influence in coffee hasn't been lost on Starbucks which has strategically deployed trucks on college campuses in an effort to win over students.
    • Despite the progressive reputation of Starbucks, analysts think new upstarts such as Craft (subscription) and Cups (app) have a shot of gaining influence with the Indie-minded millennial crowd on "customization" and pricing.
    • What to watch: An increase in M&A activity in the beverage sector is expected as major companies strategically pick off more local craft brands to incubate.
    • Craft coffee watch: GMCR, SBUX, JVA, SJM, KRFT, DNKN, QSR, MCD.
    • Craft soda watch: PEP, KO, MNST, COT, DPS, OTCQB:JSDA, REED, SODA,  FIZZ.
  • Wed, Feb. 4, 10:25 AM
    • Anheuser-Busch InBev (NYSE:BUD) has been under attack this week in the beer industry after airing a Super Bowl commercial poking fun at the craft brew craze.
    • Though the attacks from craft brewers were to be expected, MillerCoors (OTCPK:SBMRY, TAP) is also trying to get on the right side of the debate with new advertising saying beers should be "fussed over" - contrary to the A-B spot.
    • The co-founder of Elysian Brewing, which was purchased recently by A-B, didn't hold his tongue - calling the beer giant "tone-deaf" with its new angle.
    • The marketing team at Anheuser-Busch says it's attempting to define "macro" beer in a positive light.
    • In case you missed it, here's the SB commercial that has the beer industry all worked up.
    • Related stocks: TAP, BREW, OTCQX:HEINY, SAM.
    | 1 Comment
  • Wed, Jan. 21, 7:40 PM
    • Endo International (NASDAQ:ENDP) +2.9% AH on news it will join the S&P 500 later this month, replacing Covidien (NYSE:COV) after its acquisition by Medtronic (NYSE:MDT), which is expected to close next week.
    • Also, Boston Beer (NYSE:SAM) will take ENDP’s spot on the S&P MidCap 400, and Southside Bancshares (NASDAQ:SBSI) is tapped to join the S&P SmallCap 600.
    | 1 Comment
  • Fri, Jan. 16, 7:12 AM
    • Jefferies launches coverage on Boston Beer (NYSE:SAM) with a Buy rating.
    • The investment firm sees the beer stock as one of the best growth stories in the sector due its strong position with craft and cider labels.
    • A price target of $362 on SAM is set by Jefferies.
    • The early read on beer demand in the U.S. has been favorable.
  • Tue, Jan. 6, 4:16 PM
    • projects gas prices will average $2.64 per gallon in 2015.
    • Most economists see a boost in U.S. retail spending from the gas savings with the exception of regions highly dependent upon the energy industry.
    • While some Q4 reports from restaurant chains and retailers may show a marginal lift in sales due to the drop in gas prices, insiders think quantifying the impact will be more art than science.
    • The following sub-sectors have been tapped by analysts as potential under-the-radar beneficiaries of the gas price effect.
    • Theme parks: SIX, FUN, DIS, CMCSA, PLAY.
    • Beverages: KO, PEP, COT, DPS, BUD, SAM, BREW, TAP, MNST.
  • Dec. 18, 2014, 9:24 AM
    • Nomura Securities initiates coverage on Boston Beer (NYSE:SAM) with a Buy rating and $320 price target.
    • The investment firm sees low double-digit revenue growth in the medium term off of Boston Beer's strong innovation trend.
    | 1 Comment
  • Dec. 16, 2014, 10:30 AM
    • Retailers and restaurateurs are optimistic that holiday spending on adult beverages will pick up this holiday season due to the improved economic backdrop, according to research firm Technomic.
    • Though consumers are likely to stick with many of their built-up cost assessment habits, strong brands could see a sales boost on some splurging.
    | Comment!
  • Dec. 11, 2014, 8:08 AM
    • Morgan Stanley thinks beer producers could see increased demand in the U.S. due to improved consumer spending trends.
    • Lower gas prices and rising employment provide the right backdrop for an increase in beer purchasing, according to MS.
    • On the global front, Euromonitor forecasts global beer sales will rise 2.6% to $740B by 2018 - compared to the sluggish 1.3% average growth pace seen in the industry since 2004.
  • Oct. 30, 2014, 4:22 PM
    • Boston Beer (NYSE:SAM): Q3 EPS of $2.79 beats by $0.47.
    • Revenue of $269.73M (+24.6% Y/Y) beats by $11.16M.
    • Press Release
  • Oct. 11, 2014, 11:31 AM
    • The legalization of marijuana in Colorado and Washington hasn't had a negative impact on demand for beer as some analysts warned, notes Sanford Bernstein analyst Trevor Stirling.
    • Data from the investment firm found that beer drinking on a per-capita basis increased by 50 bps in the ten states where medicinal marijuana is legal.
    • The finding starkly contradicts an earlier study by academics which highlighted a crowding-out impact on the beer budget of consumers living where marijuana is legal.
    • Stirling thinks the beer vs marijuana decision for consumers isn't an either/or proposition.
  • Sep. 16, 2014, 1:57 PM
    • Cowen Research initiates Boston Beer (SAM +3.3%) with a rosy Outperform rating and $250 price target.
    • The investment firm thinks the brewer has done a solid job of keeping its brands vibrant.
    • Expecting a Boston Beer takeover? Insko Capital Management's Tim Insko rains on that parade with a dig into the company's SEC filings.
    | 1 Comment
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Company Description
Boston Beer Co Inc is engaged in the business of selling low alcohol beverages in the United States. The Companys beers are mainly positioned in the Better Beer category of the beer industry.