Boston Beer Gears Up to Report Q4 Earnings: Here's What to Expect

Core Viewpoint - Boston Beer Company is expected to report fourth-quarter 2024 results on February 25, with anticipated bottom-line growth compared to the previous year [1] Financial Estimates - The Zacks Consensus Estimate for loss per share is $1.18, an improvement from a loss of$1.49 in the year-ago quarter, although the consensus has widened in the past week [2] - Quarterly revenue is estimated at $389.6 million, indicating a 1.04% decline from the previous year's figure [2] Recent Performance - In the last reported quarter, Boston Beer achieved an earnings beat of 7.9%, with an average trailing four-quarter earnings surprise of 154.6% [3] Factors Influencing Q4 Results - The company is facing challenges due to a slowdown in the hard seltzer category and weakening demand for its Truly brand, with consumer preferences shifting towards other beverage alternatives [4][5] - Increased competition and lack of novelty in the hard seltzer market, along with macroeconomic challenges like inflation, are impacting sales [5] Strategic Positioning - Boston Beer is expected to improve performance through strong price realization and procurement savings, which are offsetting inflationary pressures [6] - The company is focusing on strategic pricing, product innovation, and brand development, particularly in the Beyond Beer category, which is growing faster than the traditional beer market [7] Earnings Prediction Model - The current model does not predict an earnings beat for Boston Beer, with an Earnings ESP of -24.19% and a Zacks Rank of 3 [8] Valuation Analysis - Boston Beer stock is trading at a premium, with a forward 12-month price-to-earnings ratio of 19.28x, compared to the industry average of 14.14x, indicating potential value for investors [9] - The stock has declined 24.4% over the past three months, while the industry has seen a decline of 12.1% [9]