Hansen, Mueller Industries director, sells $105,710 in stock
Investing.com - UBS raised its price target on Boston Beer Company (NYSE:SAM) to $246.00 from $230.00 on Friday, while maintaining a Neutral rating on the stock following the company’s third-quarter earnings report. According to InvestingPro analysis, the stock appears undervalued at current levels, with analyst targets ranging from $187 to $326.
Boston Beer reported third-quarter earnings per share approximately 31% above consensus estimates, driven by stronger gross margin and operating profit margin expansion that offset slightly weaker top-line performance. Revenue declined 10.8%, which was 70 basis points below consensus but aligned with UBS estimates. InvestingPro data shows the company maintains a healthy financial position with a GOOD overall score and strong cash flow metrics.
The company’s shipments declined 13.7% while depletions fell 3.0% during the quarter, compared to Street expectations of -11.5% and -6.0%, respectively. Boston Beer also raised its full-year 2025 EPS outlook, though the midpoint remains modestly below consensus by 2.4%.
Management attributed the stronger gross margin of 50.8% – the highest level since 2018 – to improved brewery efficiencies, procurement savings, price increases, easy comparisons, and favorable product mix benefits from Sun Cruiser innovations.
Despite the stock trading at 21 times earnings versus its five-year average of approximately 30 times, UBS indicated that greater visibility on top and bottom-line growth trajectory would be needed to become more constructive on the stock and potentially drive a re-rating back to historical levels.
In other recent news, Boston Beer Company reported third-quarter earnings that exceeded analyst expectations, despite a decline in sales. The company posted an adjusted earnings per share of $4.25, surpassing the analyst estimate of $3.33. However, revenue fell by 11.2% year-over-year to $537.5 million, just below the consensus estimate of $542.08 million. Despite the revenue dip, Boston Beer improved its gross margin performance, marking its best since 2018, which allowed for additional investments. RBC Capital maintained its Sector Perform rating and a price target of $245 on Boston Beer, noting the strong gross margin as a key highlight. The company also raised its full-year outlook, benefiting from enhanced operational efficiencies. Depletions decreased by 3%, and shipments were down 13.7% compared to the previous year. These developments reflect Boston Beer’s strategic focus on margin improvement amid a challenging sales environment.
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