Boston Beer Q3 revenue falls on lower shipment, depletion volumes

Overview

• U.S. craft brewer's Q3 revenue fell 3%, slightly missing analyst expectations

• Gross margin rose to 51.7% from 50.8%, helped by product mix and price increases

• Company repurchased $79.5 mln in shares year-to-date

Outlook

• Boston Beer raises low end of 2026 gross margin guidance to 49%-50% from 48.5%-50%

• Company now expects 2026 depletions and shipments down mid-single digits, versus prior low- to mid-single digits

• Boston Beer sees 2026 non-GAAP EPS of $9.00 to $10.50, up from $8.50 to $10.50 prior

Result Drivers

• VOLUME DECLINES - Co said Q3 revenue fell due to lower shipment and depletion volumes, with declines in Twisted Tea, Truly, and Samuel Adams brands partially offset by growth in Sun Cruiser and Angry Orchard

• PRODUCT MIX AND PRICING - Favorable product mix and price increases partially offset lower volumes, supporting gross margin expansion

• SUPPLY CHAIN IMPROVEMENTS - Co attributed improved gross margin to supply chain transformation and brewery efficiencies, per CFO Matt Murphy

Company press release:

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 12 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the brewers peer group is "hold"

• Wall Street's median 12-month price target for The Boston Beer Company, Inc. is $190.00, about 4.5% above its October 21 closing price of $181.81

• The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 17 three months ago

Reuters Recommended Reads

• Oct 22 - Finland's Olvi Q3 sales and profit miss estimates on soft demand

• Oct 21 - Heineken ordered to pay €111 million in damages, interest to Greek rival

• Oct 20 - Adidas prelim Q3 operating profit rises as full-price sales support gross margin gains

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)