Caesars' petition for new hearing before the high court is denied in case centering on deal to bring new multimillion-dollar gaming technologies to market LAS VEGAS, Aug. 6, 2024 /PRNewswire/ -- The Nevada Supreme Court has denied a request from Caesars Entertainment to reconsider a case involving Tipping Point Gaming (TPG). TPG had been working closely with Caesars Entertainment (NASDAQ: CZR) to bring new gaming technology to market. Caesars now faces a new trial on fraud claims, amongst other tort claims, ...

BOSTON, July 31, 2024 (GLOBE NEWSWIRE) -- The Boston Beer Company, Inc. (NYSE: SAM) today announced that it appointed Biz Stone and Joe Jordan to its Board of Directors, effective July 29, 2024. Mr. Stone will serve as an independent Class B Director, filling the vacancy created by the retirement of David A. Burwick, sitting on the Board's Compensation Committee and Nominating/Governance Committee. Mr. Jordan will serve as an independent Class A Director, a new seat recently added to the Board, sitting on t ...

"Our operations made significant advancements in the last two quarters of the fiscal year which resulted in net income of $0.03 per share for the year," reported Robert Eadie, Chief Executive Officer. "Our mining operations at San Martin reported healthy profits from mining operations in this period due to improved grades and, of course, metal prices. We continue to invest in San Martin and other projects in Mexico to complement our operations and build shareholder value." | --- | --- | --- | --- | |------- ...

The Sam Adams parent is getting closer to returning to growth. As of 12:17 p.m. ET, the stock was up 6.1% on the news. The quarterly report was far from stellar, but considering the company's recent struggles, it was enough to please investors. Management said that demand improved during the quarter after a weak start in April, and the company also said gross margin increased 60 basis points to 46%. However, the bottom line still came up short, falling from $4.72 to $4.39, which was well below the consensus ...

Core Viewpoint - The Boston Beer Company, Inc. (SAM) reported disappointing second-quarter 2024 results, with both net sales and earnings missing the Zacks Consensus Estimate, primarily due to weak performance in the Truly Hard Seltzer segment [12][13]. Financial Performance - Earnings per share for the second quarter were $4.39, missing the Zacks Consensus Estimate of $4.99 and declining 7% year over year [1]. - Net revenues totaled $579.1 million, a decrease of 4% from the prior year and below the Zacks Consensus Estimate of $595 million [13]. - Shipment volume fell 6.4% year over year to 2.2 million barrels, while depletions volume decreased by 4% [15]. - Gross profit declined 2.8% year over year to $266.5 million, but gross margin improved by 60 basis points to 46% [16]. Cost Management - Advertising, promotional, and selling expenses decreased by 3.5% to $144.2 million, attributed to lower freight costs and reduced spending on brand media [4]. - General and administrative expenses rose by 7% year over year to $48 million, mainly due to increased salaries and benefits [17]. Inventory and Supply Chain - As of June 29, 2024, distributor inventories averaged three and a half weeks, below the targeted four to five weeks, impacting the company's ability to meet demand [3]. Share Repurchase and Guidance - The company repurchased $127 million in Class A common stocks year to date, with $140 million remaining under its current share repurchase authorization of $1.2 billion [5]. - Boston Beer reaffirmed its 2024 guidance, projecting GAAP earnings per share between $7.00 and $11.00, with depletions and shipments expected to decline by low single digits to zero [6].

Goldman Sachs analyst Bonnie Herzog reiterated a Sell rating, while reducing the price target from $210 to $230. RBC Capital Markets analyst Nik Modi maintained a Sector Perform rating, while cutting the price target from $332 to $318. Piper Sandler analyst Michael Lavery reaffirmed an Overweight rating, while slashing the price target from $344 to $325. RBC Capital Markets: "As expected, category pressures were too much to overcome in the near term and resulted in a more muted volume outlook for the year," ...

Boston Beer stock's recent dip (and today's earlier price action) brought it closer to its May 28 five-year low of $254.40. Year to date, SAM is currently down 18.8%. It's worth noting that the stock's 14-day relative strength index (RSI) of 16.3 sits firmly in "oversold" territory, which typically precedes a short-term bounce. The stock's typically quiet options pits are seeming some activity, with the most volume at the August 330 call. In fact, the eight most popular contracts so far are calls. Analysts ...

Core Viewpoint - Boston Beer reported disappointing Q2 2024 earnings, with significant declines in shipment volumes and net income, prompting a downward revision of volume guidance for the full year [2][3][8]. Financial Performance - Net revenue decreased by 4% year over year to $579.1 million, down from $603.3 million in Q2 2023 [8][9]. - Net income fell by 9.8% to $52.3 million, compared to $58.0 million in the same quarter last year [8][9]. - Gross margin improved slightly to 46.0%, up from 45.4% in Q2 2023, attributed to price increases and procurement savings, despite higher processing costs and inflation [5][8][12]. Shipment Volumes - Shipment volume for the quarter was approximately 2.2 million barrels, reflecting a 6.4% decline from 2.3 million barrels in Q2 2023 [9][11]. - The decline in shipment volumes was primarily driven by underperformance in the Truly Hard Seltzer brand, while Twisted Tea and the newly launched Sun Cruiser brand showed growth [11][12]. Inventory and Operational Challenges - The company faced low inventory levels, averaging about three and a half weeks on hand, below the target of four to five weeks, indicating distribution inefficiencies [13]. - Rising production costs and inflationary pressures continued to impact profitability, despite some operational improvements [12]. Strategic Focus - Management maintained its full-year GAAP EPS guidance of $7.00 to $11.00, indicating confidence in long-term growth despite current challenges [14]. - Volume guidance was revised downward to reflect a flat or low single-digit decline in depletions and shipments [14].

Financial Data and Key Metrics Changes - Revenue for the quarter decreased by 4% due to lower volumes, partially offset by pricing and low returns [61] - The second quarter gross margin increased by 60 basis points to 46% from 45.4% in the prior year, benefiting from price increases and procurement savings [62] - Earnings per diluted share (EPS) was reported at $4.39, which was $0.32 lower than the second quarter of 2023 [53] Business Line Data and Key Metrics Changes - Twisted Tea grew by 15.1% in dollars and increased dollar share of FMBs by 1.6 share points, with shelf space increasing approximately 30% year-over-year [38] - Truly Hard Seltzer saw a volume decline of 22.8%, losing 2.1 share points, while lighter core packages within the Truly portfolio were down mid-single digits year-over-year [32] - The launch of Sun Cruiser has shown positive trends in depletions, distribution, and sales per point, indicating strong initial reception [39] Market Data and Key Metrics Changes - The overall Hard Seltzer category declined by 14.9% in volume, reflecting increased competition and consumer choices [32] - Distributor inventories as of June 29, 2024, averaged approximately three and a half weeks on hand, below the target of four to five weeks for the peak summer season [48] - Year-to-date depletions decreased by 2% compared to 2023, with expectations for a rebound in the second half of the year [63] Company Strategy and Development Direction - The company aims to improve end-to-end execution to unlock additional revenue and improve margins while nurturing core brands and developing margin-accretive innovations [29] - Focus will be on optimizing product development, manufacturing, and capital allocation to support a diversified portfolio [50] - The strategy includes a disciplined product roadmap and a commitment to invest in both core brands and new Beyond Beer categories [36] Management's Comments on Operating Environment and Future Outlook - Management noted that the first half of 2024 experienced challenges, but there is confidence in a recovery in the latter half of the year [59] - The company is optimistic about the growth potential of Twisted Tea and the new product Sun Cruiser, which is expected to attract new consumers [39] - Management acknowledged the need to regain market share and improve execution across all brands, particularly in the beer segment [99] Other Important Information - The company generated over $90 million in operating cash flow and repurchased $125 million worth of stock year-to-date [26] - Capital expenditures for 2024 are expected to range between $90 million and $110 million, primarily for brewery capabilities and efficiencies [57] - The company is committed to supporting brands with appropriate advertising investments, particularly in the second half of the year [46] Q&A Session Summary Question: What is the mid-term growth outlook for Twisted Tea? - Management expects another strong year of growth for Twisted Tea, with significant unrealized potential and plans for increased brand support and advertising [6] Question: How is the company addressing the decline in Hard Seltzer? - The company is focusing on gaining share and shelf space for lighter flavors and optimizing the flavor assortment to improve performance [32] Question: What are the expectations for Hard Mountain Dew? - Hard Mountain Dew is expected to benefit from expanded distribution and marketing support, with a more significant impact anticipated in 2025 [34] Question: How does the company plan to manage operating expenses? - The company plans to align internal costs with revenue while increasing marketing spend in the second half to support key launches [84] Question: What is the company's stance on being an independent public company? - Management reiterated the focus on growing the business as an independent company and emphasized the strength of its brand portfolio [137]

Over the last four quarters, the company has surpassed consensus EPS estimates two times. Boston Beer shares have lost about 21.3% since the beginning of the year versus the S&P 500's gain of 13.8%. Ahead of this earnings release, the estimate revisions trend for Boston Beer: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to ...