Boston Beer’s Q2 EPS of $4.96 exceeded estimates, driven by 60 basis points of margin expansion and a $1.31 litigation benefit.
Boston Beer reported second-quarter GAAP diluted EPS of $4.96, beating Wall Street estimates of $4.83, while non-GAAP EPS reached $3.65. The beat was supported by a 60 basis-point year-over-year increase in gross margin to 50.4% and a $1.31 per-share after-tax benefit from supplier litigation adjustments.
Net revenue of $568.3 million aligned with expectations but declined 3.3% year-over-year. Depletions fell 6%, outperforming fears of a 9% drop, while shipment volume dropped 4.5% to 2.0 million barrels. Management maintained full-year non-GAAP EPS guidance of $8.50 to $10.50.
Analysts adjusted price targets post-earnings, with Roth Capital cutting its target to $295 from $315 but retaining a Buy rating. Deutsche Bank lowered its target to $176 from $187, maintaining a Hold rating, citing potential downside to full-year guidance if trends persist.