Shares of Boston Beer Co. was on track for a new record high on Thursday afternoon, after an earnings report showed that bubbly selection machines were uplifting the company’s morale.
best known for its Sam Adams branded beers, which reported a profit of $ 65.6 million, or $ 5.26 a share, more than three times the $ 18.2 million total for the same quarter. A year ago. The company’s net sales, including excise tax, rose to $ 545.1 million from $ 330.6 million a year ago.
Analysts averaged an expectation of $ 2.61 per share on $ 477.3 million in revenue. Shares have risen more than 8% in after-hours trading shortly after the results are released, the gains will push Boston Beer shares to record highs if they hold on to Friday trading. Shares hit a record intraday high of $ 1,319.34 in regular Thursday trading, but fell back to close with a 0.7% drop at $ 1,246; The stock hit a record high at a close of $ 1,294.93 on April 16.
While known for its Sam Adams label, as well as Dogfish Head and other beers, Boston Beer executives have noted a newer beverage category for its sake: hard seltzer. The company has jumped into a category that has grown in popularity in recent years with the introduction of White Claw and other fruit and carbonated alcoholic beverages.
“The recently launched Truly Iced Tea Hard Seltzer has driven the growth of the Truly brand, having more than doubled since last year,” CEO Dave Burwick said in a statement Thursday. “In the first quarter, on measured off-premises channels, the Truly brand surpassed nearly 2 times, or 50 percentage points, resulting in an increase in market share of 6.5 percentage points. The Truly brand now has a market share of more than 28%, accounting for approximately 40% of total growth in the hard-seltzer category, more than twice the next largest growth brand. “
Boston Beer is expected to launch a Truly-branded fruit drink in the second quarter, Truly Punch Hard Seltzer, while continuing to strengthen its Twisted Tea brand.
“Twisted Tea continued to generate double-digit output growth, significantly higher than the 2020 trend,” Burwick said in a statement Thursday. Measured, shift growth in Twisted Tea brand products is almost three times higher than its closest competitor and we believe Twisted Tea is on its way to becoming a digital flavored malt. one (FMB) this year ended. “
The executives also added $ 2 to their adjusted earnings per share forecast for the year, now predicting $ 22 to $ 26 a share after previously saying $ 20 to $ 24. stock.
One concern for executives is to produce enough hard filters to meet supply and how that could affect their bottom line. Burwick said that Boston Beer would have to contract with third-party breweries to help produce their products, which could cut profits.
“While we anticipate margins improvement in 2021, our gross margins and our gross margin expectations will continue to be negatively affected until volume growth of We’re settled, ”said Burwick.