Boston Beer Q1 revenue falls 4.4% on volume declines

Overview

• U.S. craft brewer's Q1 revenue fell 4.4%, slightly missing analyst expectations

• Adjusted EPS for Q1 missed consensus; gross margin improved year over year

• Company repurchased $31 mln in shares during the quarter

Outlook

• Boston Beer sees 2026 depletions and shipments down low- to mid-single digits

• Company expects 2026 gross margin of 48% to 50%

• Boston Beer projects 2026 non-GAAP EPS of $8.50 to $10.50

Result Drivers

• VOLUME DECLINES - Co said Q1 depletions fell 4% and shipments fell 6.9%, mainly due to lower sales of Twisted Tea, Truly, Samuel Adams and Hard Mountain Dew, partially offset by gains in Sun Cruiser, Angry Orchard and Dogfish Head

• PRICING AND MIX - Revenue decline was partially offset by price increases and favorable product mix

• GROSS MARGIN GAINS - Gross margin rose 100 basis points, benefiting from price increases, favorable product mix, procurement savings, and improved brewery efficiencies, partially offset by inflationary, commodity and tariff costs

Company press release: ID:nGNX64dvKl

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", 13 "hold" and 2 "sell" or "strong sell"

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

• Wall Street's median 12-month price target for Boston Beer Company Inc is $235.00, about 0.6% below its April 29 closing price of $236.49

• The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 18 three months ago

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