Boston Beer Q2 Earnings Beat & Raised '25 Outlook Fuel Stock Gains

Core Insights - Boston Beer Company, Inc. (SAM) reported second-quarter 2025 results with earnings per share of $5.45, exceeding the Zacks Consensus Estimate of $4.37 and showing a 241% year-over-year improvement [3][9] - Net revenues reached $587.9 million, a 1.5% increase from the prior-year quarter, but fell short of the Zacks Consensus Estimate of $597 million [4] - Despite a 5% decline in depletions due to economic uncertainty and adverse weather, the company gained market share through a diversified brand portfolio and strong innovation [2][7] Financial Performance - Gross profit improved by 9.8% year over year to $292.5 million, with gross margin expanding by 380 basis points to 49.8% [11] - Advertising, promotional, and selling expenses rose by 10.7% to $15.5 million, while general and administrative expenses decreased by 4.7% to $2.3 million [12] - Year-to-date depletions are estimated to have declined by 3% year over year, with distributor inventory levels deemed appropriate [10] Market Position and Guidance - The company raised its gross margin guidance for 2025, now projecting a gross margin of 46-47.3% including tariffs, up from the previous estimate of 44% to 46.5% [17] - Capital spending expectations have been reduced to $70 to $90 million, reflecting a more disciplined investment approach [19] - The company anticipates depletions and shipments to decline in the high single digits to low single digits for 2025, with price increases remaining unchanged at 1% to 2% [16]