SAM

Boston Beer’s second quarter drew a positive market response despite a 3.3% revenue decline and a significant shortfall in adjusted earnings. Management attributed this result to strong growth in SunCruiser and Angry Orchard, offsetting continued challenges for Twisted Tea and Truly. CEO C. James Koch noted that on-premise sales benefited from major events like the World Cup, but these gains were limited in scope and could not fully counteract category-wide headwinds. Advertising and promotional investments rose, but price increases and improved supply chain efficiency helped maintain stable gross margins. Is now the time to buy SAM? Find out in our full research report (it’s free). Revenue: $568.3 million vs analyst estimates of $570 million (3.3% year-on-year decline, in line) Adjusted EPS: $3.65 vs analyst expectations of $4.83 (24.4% miss) Management reiterated its full-year Adjusted EPS guidance of $9.50 at the midpoint Operating Margin: 12.5%, down from 14% in the same quarter last year Market Capitalization: $1.89 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Filippo Falorni (Citi): Asked about industry volatility and economic pressures. CEO C. James Koch replied that persistent inflation and gas prices are affecting beer consumption, but premiumization and RTD spirits remain growth areas. Peter Grom (UBS): Inquired about the impact of World Cup and 250th anniversary events. Koch explained that on-premise gains were significant in host cities but limited in scale, with little effect on overall business. Eric Serotta (Morgan Stanley): Questioned SunCruiser’s future growth after initial distribution expansion. Koch said SunCruiser remains strong in on-premise and expects double-digit growth in the next year, driven by brand strength and high margins. Bonnie Herzog (Goldman Sachs): Pressed on risks to depletion trends and advertising spend reductions. CFO Diego Reynoso stated that improvements are expected from SunCruiser and new innovations, with advertising cuts targeting low-performing channels like Truly. Bill Kirk (Roth Partners): Asked about criteria for expanding Sinless and Lit, as well as hemp beverage opportunities. Koch responded that broader rollouts depend on proven traction, and that Boston Beer will wait for regulatory clarity before entering the U.S. hemp beverage market. Looking ahead, key areas to monitor include (1) the pace of SunCruiser’s distribution and velocity gains across both on- and off-premise channels; (2) any stabilization or recovery in Twisted Tea’s volume trends, especially as spirits-based teas mature; and (3) early signs of success from Sinless Vodka Cocktails and Lit Electric Coolers. The company’s ability to sustain gross margin improvements amid persistent cost inflation will also be a focus. Boston Beer currently trades at $187.02, up from $174.51 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free for active Edge members). ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time. Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.

The Boston Beer Company, Inc. SAM has financial strengths that should not be dismissed. It has no debt, solid cash generation and improving gross margins. The problem is that weak demand is cutting into earnings visibility. For investors, the question is whether balance-sheet resilience can offset estimate cuts, lower volumes and a valuation that still looks demanding. SAM trades at 18.29X forward 12-month earnings. That compares with 15.28X for its Zacks sub-industry and 16.98X for the broader Zacks sector Image Source: Zacks Investment Research The premium is harder to defend while volumes are declining. The $153 price target, based on 17.21X forward 12-month earnings, sits below the $180.15 share price and points to downside risk. The stock does trade below its five-year median multiple of 26.34X. Still, a lower-than-historical valuation does not automatically make the shares attractive when earnings expectations are falling. Constellation Brands STZ and Molson Coors Beverage Company TAP offer relevant peer context for investors tracking alcohol demand, pricing power and category share shifts. Both stocks sit in the same broader beverages-alcohol investment discussion as SAM. Boston Beer posted second-quarter adjusted earnings of $3.65 per share, missing the Zacks Consensus Estimate of $4.77. The figure declined 33% from the year-ago quarter. Revenues fell 3.3% to $568 million. Lower volumes and higher marketing costs weighed on results, even as pricing and favorable mix helped cushion part of the pressure. Estimate revisions are also negative. The fiscal-year earnings estimate fell 10.5% over four weeks and 13.25% over 12 weeks, reinforcing a weaker near-term earnings setup. SAM ended the second quarter with $265.5 million in cash and no debt. The company also had full availability under its $150 million revolving credit facility. First-half operating cash flow totaled $117.6 million, while capital expenditures were $22.9 million. Those figures show that the business is still producing cash despite softer demand. Management also reduced its full-year capital-spending outlook to $60 million to $80 million from $70 million to $90 million. That gives the company more flexibility as it focuses spending on brewery capabilities, efficiency and innovation. Boston Beer still has levers that could support profitability. Management expects price increases of 1% to 2%, while supply-chain productivity and higher internal production should help margins. Internal production reached 84% of domestic volume in the second quarter, up from 76% a year earlier. Management expects that rate to exceed 90% for the full year. Image Source: Zacks Investment Research Sun Cruiser delivered triple-digit depletion growth, and Angry Orchard grew for a fifth consecutive quarter. Those gains support portfolio renewal. The offset is that companywide volumes remain under pressure. Tariff costs are expected to total $20 million to $30 million, freight inflation remains a concern and litigation exposure continues to cloud reported earnings and cash deployment. The bottom line is that SAM’s balance sheet and margin progress help limit financial risk, but they do not yet fix the demand problem. A buying case would be stronger with clearer evidence that volumes and core brand trends are stabilizing. The stock currently carries a Zacks Rank #5 (Strong Sell), reflecting negative earnings-estimate revisions and weak near-term momentum. That signal favors caution. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. SAM’s Growth Score of B and VGM Score of B recognize areas of operating potential. The Value Score of C and Momentum Score of F suggest the risk-reward profile remains unattractive without stronger demand stabilization. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Boston Beer Company, Inc. (SAM) : Free Stock Analysis Report Molson Coors Beverage Company (TAP) : Free Stock Analysis Report Constellation Brands Inc (STZ) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Find your next quality investment with Simply Wall St's easy and powerful screener, trusted by over 7 million individual investors worldwide. Boston Beer Company (SAM) stock is back in focus after the brewer reported second quarter 2026 results, which showed lower sales, revenue and earnings, along with updated full year loss guidance and continued share repurchases. See our latest analysis for Boston Beer Company. Boston Beer Company’s latest quarterly report and guidance update come after a tough stretch, with the share price down 23.79% over 3 months and the 1 year total shareholder return declining 16.21%. This points to fading momentum as investors weigh weaker volumes against cost control and buybacks. If Boston Beer’s recent swings have you rethinking your watchlist, it could be a good moment to widen your search and check out 18 top founder-led companies After Boston Beer’s double digit share price drop and guidance still pointing to a loss this year, the core issue now is whether the recent reset has cleared most of the pain or if the upside case is already largely priced in. Boston Beer Company is trading at $180.15 versus a fair value narrative of $230.39, so the current setup leans toward a discount that hinges on future execution. Read the complete narrative. Want to see what is sitting behind that margin story and fair value gap? The narrative leans heavily on steadier revenue, rising profitability and a future earnings multiple that has to do some heavy lifting. The exact path is laid out in detail, but the numbers are anything but casual. Result: Fair Value of $230.39 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, there is still meaningful risk to the Boston Beer Company story if broader alcohol consumption keeps softening or if new Beyond Beer launches fail to sustain consumer interest. Find out about the key risks to this Boston Beer Company narrative. If this Boston Beer Company narrative feels finely balanced, it is worth getting closer to the numbers and forming your own stance quickly. You can start with 3 key rewards. If Boston Beer Company is on your radar, do not stop there. Broaden your watchlist now and give yourself more options before the next move catches you off guard. Target dependable cash generators by reviewing steady dividend payers through the 9 dividend fortresses. Hunt for potential bargains by scanning companies that look attractively priced across key fundamentals using the 49 high quality undervalued stocks. Seek resilience first by focusing on companies that combine strong finances with measured risk in the 81 resilient stocks with low risk scores. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include SAM. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management attributed the 6% depletion decline to a softening beer market in the second quarter, specifically citing a challenging May followed by a June recovery driven by major sporting and national events. The company identified a significant volume headwind in Twisted Tea 12-packs, driven by reduced display activity in the Flavored Malt Beverage (FMB) category and consumer shifts toward spirits-based RTDs. Sun Cruiser was highlighted as a key strategic success, achieving triple-digit growth and serving as a revenue-accretive offset to declines in the malt-based portfolio. Gross margin expansion to 50.4% was driven by internal production efficiencies, with 84% of domestic volume now produced in-house compared to 76% in the prior year. Management noted that while they slightly gained shelf space, they lost display space, prompting a reassessment of retail programming and promotional effectiveness. The company is intentionally reducing planned advertising investment by $20 million by eliminating lower-performing media, primarily associated with the Truly brand. Full-year volume guidance remains at down low-to-mid single digits, with management signaling that current trends point toward the lower end of that range. The company expects a modest shipment growth in the fourth quarter, primarily due to lapping prior-year supply chain adjustments and the timing of automated replenishment system implementation. Management assumes continued inflationary pressure on consumers from gas prices and cumulative inflation, which may persist as a headwind through the remainder of 2026. Strategic focus for 2027 includes scaling revenue management capabilities to provide a more meaningful contribution to margins through disciplined pricing and pack-size architecture. Innovation contributions from Sinless Vodka Cocktails and LYTT Electric Coolers are expected to be volume tailwinds in the second half, though not yet material to full-year results. A favorable $19.3 million adjustment related to supplier dispute litigation was recorded, though the company continues to pursue all available appellate remedies. Freight rate inflation increased more than 35% year-over-year, leading to a slightly higher-than-planned freight cost impact of $8.6 million in the second quarter. Full-year tariff costs are estimated at $20 million to $30 million, representing a significant year-over-year headwind compared to $11 million in 2025. Management reduced the 2026 capital expenditure estimate to $60 million to $80 million, down from the previous $70 million to $90 million range, to maintain capital discipline. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management clarified that while events like the World Cup drove 30% growth in specific host-city on-premise channels, the overall impact on annual volume is less than 0.5% due to the small size of the on-premise segment (12% of total business). Off-premise trends during these event windows remained generally soft and did not see a corresponding lift. Jim Koch stated the company is 'locked and loaded' with its TeaPot brand experience from Canada but will wait for federal legal clarity before launching THC-related products in the U.S. The company declined to take a policy stance on hemp bans, stating they will simply respond to what the government deems legal. Management believes Twisted Tea volume losses are stabilizing as the rapid growth of spirits-based competitors like Surfside begins to moderate. The recovery playbook focuses on fixing 'broken' pricing where 12-packs became more expensive than premium imports, alongside growth in the 'Extreme' and 'Light' sub-lines.

Interested in The Boston Beer Company, Inc.? Here are five stocks we like better. Boston Beer’s second quarter was mixed: demand stayed weak, with depletions down 6% and revenue down 3.3% as Twisted Tea, Truly, Samuel Adams, Hard MTN DEW and Dogfish Head declined. Growth in Sun Cruiser and Angry Orchard helped offset some of the pressure. Margins improved despite volume declines: gross margin rose to 50.4% thanks to brewery efficiencies, favorable mix, procurement savings and price increases. However, advertising and promotional spending climbed sharply, including higher brand marketing and freight costs. Guidance was kept intact, but spending plans were trimmed: the company maintained full-year volume and EPS guidance while raising the low end of its gross margin outlook. It also cut planned incremental ad spending by $20 million and reduced 2026 capex guidance. Buy, Hold, or Wait: 3 Small-Cap Stocks Telling Different Stories Boston Beer (NYSE:SAM) said second-quarter demand remained challenging as declines in Twisted Tea and Truly continued to weigh on volume, even as Sun Cruiser and Angry Orchard posted growth and gross margin improved. On the company’s 2026 second-quarter earnings call, Founder, CEO and Chairman Jim Koch said the broader beer market improved modestly in the first half of the year but remained uneven. Boston Beer estimates the combined beer and “beyond beer” market declined 2% in volume in the first half, compared with a 4% decline for full-year 2025. Koch said the category was nearly flat in the first quarter, softened in the second quarter and saw May as “particularly challenging,” before improving in June on drinking occasions tied to the World Cup and America’s 250th anniversary celebrations. → Could Truth API Become Trump Media’s First Meaningful Revenue Driver? Tap Into Molson Coors Stock: A Top Beverage Value Play “We anticipate industry volume headwinds for the remainder of 2026 as consumers remain under pressure from the cumulative effects of inflation and a significant increase in gas prices,” Koch said. Chief Financial Officer Diego Reynoso said second-quarter depletions declined 6% from the prior year, while shipments decreased 4.5%. The declines were driven primarily by lower volume in Twisted Tea, Truly, Samuel Adams, Hard MTN DEW and Dogfish Head, partially offset by increases in Sun Cruiser and Angry Orchard. → 3 Photonics Companies Making Quantum Tech Possible Constellation Brands Stock Q1 2025: Crushing Anheuser-Busch? Revenue for the quarter fell 3.3%, reflecting lower volume, partially offset by price increases and favorable product mix. Reynoso said positive mix was driven by strong growth in Sun Cruiser. Gross margin improved to 50.4%, up 60 basis points year over year. Reynoso attributed the improvement to brewery efficiencies, favorable product mix, procurement savings and price increases, partly offset by higher commodity, tariff and energy-related costs. → AeroVironment’s Stock Is Down, But Drone Demand Is Taking Off Advertising, promotional and selling expenses rose $26.2 million, or 16.4%, from the prior year. That included $17.5 million of increased local brand marketing and point-of-sale investments, along with an $8.6 million freight cost increase. General and administrative expenses rose $3.1 million, primarily from higher legal fees and salary and benefit costs. Excluding litigation-related expenses, Boston Beer reported second-quarter non-GAAP earnings per share of $3.65. Reynoso said year-to-date pre-tax litigation expenses plus related fees totaled $198.1 million, tied to previously discussed supplier dispute litigation. He said the company intends to pursue available post-trial motions and appellate remedies and does not expect the matter to have a material impact on operating plans. Koch said Boston Beer’s portfolio continues to lag the pace of improvement in the broader category, with continued market share challenges in Twisted Tea and Truly. However, Sun Cruiser delivered triple-digit depletion growth in the quarter, and Angry Orchard continued to grow. For hard tea, Koch said a key priority is improving share trends and growing volume through both Twisted Tea and Sun Cruiser. On a combined basis, Twisted Tea and Sun Cruiser volume was “very slightly positive” year to date through 29 weeks, while revenue was growing. Twisted Tea remains dominant in malt-based hard tea, with more than 85% share and no single competitor above 5%, according to Koch. Still, the brand is under pressure from broader flavored malt beverage headwinds, reduced feature and display activity and competition from spirits-based hard teas. Koch said 12-packs remain the largest volume headwind, affected by lower display activity and consumer movement away from larger pack sizes. Boston Beer is using advertising, partnerships, new pack sizes, expanded Twisted Tea Extreme distribution and targeted pricing adjustments to address the pressure. Koch said Twisted Tea Singles, Twisted Tea Light and Twisted Tea Extreme all gained share within the FMB category. Sun Cruiser, meanwhile, has become a top-five spirits ready-to-drink brand and is among the fastest-growing brands by volume in combined measured on- and off-premise channels, Koch said. He described the brand as revenue- and margin-accretive, with strong distribution opportunities still ahead. In response to an analyst question, Koch said Sun Cruiser is much larger than syndicated data indicates because of its strength in on-premise and independent accounts. Truly retained its No. 2 share position in hard seltzer, but Koch said volume and share trends remain challenged. Within the portfolio, high-ABV Truly Unruly and the Wild Berry flavor are outperforming other styles. Koch said soccer-related promotions and new brand creative improved marketplace presence, particularly displays, but consumer demand has not met expectations. “We are adjusting the level and timing of our investments in Truly as we reassess the most effective approach to accelerating brand performance,” Koch said. Angry Orchard grew for the fifth consecutive quarter, led by Angry Orchard Crisp and Crisp Imperial. Koch said Crisp Imperial volume rose more than 60% in the second quarter in measured off-premise channels. Samuel Adams launched limited-edition retro packaging and “Drink Like It’s 1776” programming tied to America’s 250th anniversary. Koch said Boston Beer’s taprooms in Boston saw record summer sales as soccer fans visited during World Cup-related activity. Dogfish Head slightly lost share and declined after four quarters of growth, though the company is continuing to support its Grateful Dead Beer collaboration and Minute series IPAs. Boston Beer maintained its full-year volume guidance for shipments and depletions to be down low single digits to down mid-single digits. Reynoso said depletions declined 5% year over year through the first 29 weeks, and current company trends would point to the lower end of the full-year range unless category and share trends improve. The company raised the low end of its gross margin outlook and now expects full-year gross margin of 48.5% to 50%. Boston Beer continues to expect price increases of 1% to 2%, with additional benefit from mix. Its non-GAAP EPS guidance remains $8.50 to $10.50, with an expected non-GAAP effective tax rate of about 29% to 30%. Boston Beer lowered its planned incremental advertising, promotional and selling expense range by $20 million. The company now expects those expenses, excluding freight changes, to be flat to up $20 million versus the prior year, compared with a previous expectation of up $20 million to $40 million. Koch said the reduction came from lower-performing advertising, primarily in Truly. Reynoso said the company expects third-quarter shipments to decline low to mid-single digits, followed by modest shipment growth in the fourth quarter, partly reflecting prior-year comparisons related to supply chain improvements and automated replenishment changes. Boston Beer ended the quarter with $266 million in cash and $150 million available under its credit line. Reynoso said those balances, along with projected operating cash flow, support operating investments, shareholder returns and potential litigation-related payments. The company reduced its 2026 capital expenditure outlook to $60 million to $80 million from $70 million to $90 million, with investments focused on brewery capabilities, efficiencies and innovation support. Boston Beer repurchased $48.5 million of shares during the 26 weeks ended June 27 and another $5.6 million through July 17. As of July 18, it had approximately $174 million remaining under its $1.6 billion share repurchase authorization. The Boston Beer Company, Inc (NYSE: SAM) is a leading craft brewer headquartered in Boston, Massachusetts. Since its founding in 1984 by Jim Koch, the company has focused on producing high-quality, distinctive beers and beverages for retail, on-premise, and distribution partners across the United States. Its operations include brewing, packaging, marketing and distribution, supported by a network of wholly owned brewing facilities and strategic partnerships with regional breweries. Boston Beer's flagship brand, Samuel Adams Boston Lager, helped establish the modern U.S. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Boston Beer Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

The Boston Beer Company, Inc. SAM reported lower-than-expected revenues and earnings in second-quarter 2026. The top and bottom lines also fell year over year. It posted second-quarter adjusted earnings per share (EPS) of $3.65, missing the Zacks Consensus Estimate of $4.77. The reported number decreased 33% from the year-ago figure. The Boston Beer Company, Inc. price-consensus-eps-surprise-chart | The Boston Beer Company, Inc. Quote Net revenues declined 3.3% to $568 million and missed the consensus estimate of $572 million by 0.7%. Higher advertising, promotional and selling expenses, along with lower volumes, weighed on results. Depletions dipped 6% in the quarter, while shipment volume declined 4.5% to about 2 million barrels. Lower shipments of Twisted Tea, Truly, Samuel Adams, Hard Mountain Dew and Dogfish Head more than offset growth in Sun Cruiser and Angry Orchard.Year-to-date depletions through the 26-week period ended June 27, 2026, decreased roughly 5% from the comparable period in 2025.Boston Beer said distributor inventories were appropriate at the quarter-end and averaged roughly four and a half weeks on hand, unchanged from the comparable 2025 period. Favorable product mix and pricing partly cushioned the impact of lower volumes. SAM reported a gross margin of 50.4%, up 60 basis points (bps) from the second quarter of 2025, benefiting from price increases, a favorable product mix, procurement savings and enhanced brewery efficiencies. The gain was partly offset by inflationary, commodity and tariff costs. Gross margin also included $1.6 million of shortfall fees and non-cash expenses of third-party production pre-payments in total, which hurt the metric by nearly 28 bps on an absolute basis.Advertising, promotional and selling expenses increased 16.4%, or $26.2 million, from the prior-year quarter. The increase included $17.5 million of higher brand, local marketing and point-of-sale investments.Freight costs rose $8.6 million because of higher rates, partly offset by lower volumes. General and administrative expenses increased $3.1 million, mainly because of higher legal fees and salary and benefit costs. Boston Beer ended the quarter with $265.5 million in cash and no debt. Net cash provided by operating activities totaled $117.6 million for the first 26 weeks of 2026, while capital expenditures were $22.9 million.The company repurchased $54.1 million of Class A shares from Dec. 29, 2025, through July 17, 2026. About $174 million remained under its board-authorized $1.6 billion repurchase limit as of July 17. Boston Beer updated its full-year 2026 guidance while cautioning that results remain sensitive to volume trends, supply-chain execution, inflation, commodity costs and tariff policies. The company continues to expect depletions and shipments to decline in the low-single-digit to mid-single-digit range, with price increases of 1-2%. It raised the lower end of its gross margin outlook to 48.5% from 48%, while retaining the upper end at 50%. Tariff costs are still projected at $20-$30 million.Management lowered its anticipated year-over-year increase in advertising, promotional and selling expenses to $0-$20 million from $20-$40 million expected earlier. It also revised the GAAP loss outlook to $6.23-$4.23 per share from a loss of $7.02-$5.02, reflecting a reduced litigation-related impact of $14.73 per share versus $15.52 previously. The adjusted tax rate forecast remains 29-30%, while adjusted earnings guidance was maintained at $8.50-$10.50 per share. Capital spending is now expected to be $60-$80 million, down from the prior projection of $70-$90 million.The company continues to monitor commodity inflation, particularly energy costs, which affect freight and aluminum expenses. Supply-chain improvements implemented in 2025 have helped stabilize distributor inventory levels, though shipment timing is expected to influence second-half comparisons. Boston Beer anticipates shipments to decline in the low- to mid-single-digit range in the third quarter, followed by modest growth in the fourth quarter.Gross margin improvement is expected to be most pronounced in the fourth quarter, aided by lower shortfall fees compared with the prior year. However, shortfall fees and non-cash expenses related to third-party production prepayments are still projected to reduce full-year gross margin by 40-60 basis points. Advertising investment is expected to decline year over year in the fourth quarter due to lower planned spending and a tough comparison with elevated production costs in the prior-year period.This Zacks Rank #3 (Hold) company’s shares have declined 25.5% in the past three months, underperforming the industry’s 3.8% growth. Image Source: Zacks Investment Research Some better-ranked stocks have been discussed below:Fomento Económico Mexicano, S.A.B. de C.V. FMX operates as a franchise bottler of Coca-Cola trademark beverages worldwide. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for FMX's current fiscal-year sales and earnings indicates growth of 17.3% and 131%, respectively. FMX delivered a trailing four-quarter negative earnings surprise of nearly 17%, on average.Mama's Creations, Inc. MAMA manufactures and markets fresh deli-prepared foods in the United States. At present, the company flaunts a Zacks Rank of 1. Mama's Creations delivered a trailing four-quarter earnings surprise of 129.2%, on average.The consensus estimate for Mama's Creations’ current fiscal-year sales and earnings implies growth of 30% and 73.3%, respectively, from the year-ago figures. The Vita Coco Company, Inc. COCO develops, manufactures, markets and distributes coconut water products under the Vita Coco brand name. The company currently carries a Zacks Rank #2 (Buy).The Zacks Consensus Estimate for COCO's current fiscal-year sales and earnings implies growth of 22.3% and 48.7%, respectively, from the year-ago actuals. COCO delivered a trailing four-quarter earnings surprise of 11.7%, on average. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Boston Beer Company, Inc. (SAM) : Free Stock Analysis Report Vita Coco Company, Inc. (COCO) : Free Stock Analysis Report Fomento Economico Mexicano S.A.B. de C.V. (FMX) : Free Stock Analysis Report Mama's Creations, Inc. (MAMA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Revenue: Decreased 3.3% due to lower volume, partially offset by price increases and favorable product mix. Depletions: Decreased 6% in the second quarter. Shipments: Decreased 4.5% in the second quarter. Gross Margin: Increased to 50.4%, up 60 basis points year-over-year. Advertising, Promotional, and Selling Expenses: Increased by $26.2 million or 16.4% year-on-year. General and Administrative Expenses: Increased by $3.1 million, primarily due to increased legal fees and salaries. Operating Profit: Affected by strong gross margin performance, offset by significant advertising investment and freight rate inflation. Non-GAAP EPS: $3.65 for the second quarter. Cash Balance: $266 million at the end of the quarter. Share Repurchase: $48.5 million repurchased during the 26-week period ended June 27, 2026, and $5.6 million from June 29, 2026, through July 17, 2026. Capital Expenditures: Expected to be between $60 million and $80 million in 2026. Is SAM fairly valued? Test your thesis with our free DCF calculator. Release Date: July 23, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Boston Beer Co Inc (NYSE:SAM) achieved a 50.4% gross margin in the second quarter, despite higher aluminum, energy, and tariff costs. Sun Cruiser experienced triple-digit depletion growth and is among the fastest-growing brands in the RTD spirits category. The company has made significant improvements in its supply chain, reducing wholesaler inventory levels to approximately four to four-and-a-half weeks. Boston Beer Co Inc (NYSE:SAM) has maintained its earnings guidance while navigating a dynamic demand environment and cost inflation headwinds. The company has repurchased over $55 million in shares year-to-date, indicating strong cash flow and shareholder value focus. Second quarter depletions were down 6% and shipments were down 4.5%, with first-half shipments down 5.6%. Twisted Tea and Truly continue to face declines and market share challenges, impacting overall performance. The company anticipates industry volume headwinds for the remainder of 2026 due to inflation and increased gas prices. Advertising, promotional, and selling expenses increased by $26.2 million or 16.4% year-on-year, impacting profitability. Boston Beer Co Inc (NYSE:SAM) is facing significant litigation expenses, with year-to-date pre-tax litigation expenses totaling $198.1 million. Q: Jim, could you provide your perspective on the industry's volatility, particularly with the impact of gas prices and recent events? Are there any signs of improvement in July that give you optimism for the rest of the year? A: C. James Koch, CEO, noted that all alcoholic beverages, including beer, are under pressure. Traditional beer is down 2-3%, while beyond beer is doing slightly better. He mentioned that economic pressures, such as inflation and events in the Middle East, are affecting discretionary income. However, he expects a 1-2% long-term downward pressure on consumption, somewhat offset by premiumization. Q: Diego, you mentioned tracking toward the lower end of shipment guidance. Does this imply a similar trend for EPS, or is there room for margin improvement to offset topline pressure? A: Diego Reynoso, CFO, clarified that while current trends suggest the lower end for topline, EPS guidance is slightly up due to strong cost savings and the ability to adjust investments. Thus, topline and EPS guidances are somewhat independent. Q: Can you provide insights on the impact of the World Cup and America's 250th anniversary on beer volumes? Did these events meet your expectations? A: Jim Koch explained that while these events had a significant impact on on-premise sales in specific areas, they did not affect the broader beer market significantly. The World Cup, for instance, boosted on-premise sales in host cities but had a limited impact on overall annual business. Q: How are you planning to sustain Sun Cruiser's growth as you cycle through national distribution expansion? What initiatives are planned for next year? A: Jim Koch stated that Sun Cruiser is experiencing triple-digit growth, particularly strong in on-premise and independent accounts. The company plans to continue investing in Sun Cruiser with TV, digital, and social advertising. While distribution opportunities may be smaller in 2027, they expect continued double-digit growth. Q: What is your strategy for improving Twisted Tea's performance, given the challenges it faces? A: Jim Koch mentioned that Twisted Tea's volume loss is partly due to competition from RTD spirits-based hard teas. The company is addressing pricing issues in certain markets and focusing on growth areas like Twisted Tea Extreme and Lite. They plan to maintain advertising levels and stabilize pricing to improve performance. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Beer company Boston Beer (NYSE:SAM) met Wall Street’s revenue expectations in Q2 CY2026, but sales fell by 3.3% year on year to $568.3 million. Its non-GAAP profit of $3.65 per share was 24.4% below analysts’ consensus estimates. Is now the time to buy Boston Beer? Find out in our full research report. Revenue: $568.3 million vs analyst estimates of $570 million (3.3% year-on-year decline, in line) Adjusted EPS: $3.65 (GAAP EPS of $4.96, which includes a previously disclosed favorable adjustment to non-recurring litigation expenses of $1.31 per share) Management reiterated its full-year Adjusted EPS guidance of $9.50 at the midpoint Operating Margin: 12.5%, down from 14% in the same quarter last year Free Cash Flow Margin: 22.4%, up from 19.1% in the same quarter last year Market Capitalization: $1.77 billion “As we continue to navigate a challenging operating environment, we are managing the business with discipline while investing behind our category-leading brands and bringing innovation to market” said Chairman, Founder and CEO Jim Koch. Known for its flavorful beverages challenging the status quo, Boston Beer (NYSE:SAM) is a pioneer in craft brewing and a symbol of American innovation in the alcoholic beverage industry. A company’s long-term sales performance is one signal of its overall quality. Any business can have short-term success, but a top-tier one grows for years. With $1.93 billion in revenue over the past 12 months, Boston Beer is a small consumer staples company, which sometimes brings disadvantages compared to larger competitors benefiting from economies of scale and negotiating leverage with retailers. As you can see below, Boston Beer struggled to generate demand over the last three years. Its sales dropped by 2.2% annually, a tough starting point for our analysis. This quarter, Boston Beer reported a rather uninspiring 3.3% year-on-year revenue decline to $568.3 million of revenue, in line with Wall Street’s estimates. Looking ahead, sell-side analysts expect revenue to grow 1.7% over the next 12 months. Although this projection implies its newer products will fuel better top-line performance, it is still below average for the sector. ONE MORE THING: The $21 AI Application Stock Wall Street Forgot. While Wall Street obsesses over who’s building AI, one company is already using it to print money. And nobody’s paying attention. AI chip stocks trade at ridiculous valuations. This company processes a trillion consumer signals monthly using AI and trades at a third of the price. The gap won’t last. The institutions will figure it out. You need to see this first. Read the FREE Report Before They Notice. Although earnings are undoubtedly valuable for assessing company performance, we believe cash is king because you can’t use accounting profits to pay the bills. Boston Beer has shown robust cash profitability, driven by its attractive business model that enables it to reinvest or return capital to investors. The company’s free cash flow margin averaged 10.8% over the last two years, quite impressive for a consumer staples business. The divergence from its underwhelming operating margin stems from the add-back of non-cash charges like depreciation and stock-based compensation. GAAP operating profit expenses these line items, but free cash flow does not. Boston Beer’s free cash flow clocked in at $127.5 million in Q2, equivalent to a 22.4% margin. This result was good as its margin was 3.3 percentage points higher than in the same quarter last year, but we wouldn’t read too much into the short term because investment needs can be seasonal, leading to temporary swings. Long-term trends are more important. It was good to see Boston Beer provide full-year EPS guidance that slightly beat analysts’ expectations. We were also happy its gross margin narrowly outperformed Wall Street’s estimates. On the other hand, revenue was just in line. Overall, this was a decent quarter. The stock traded up 2.2% to $178.50 immediately following the results. So should you invest in Boston Beer right now? If you’re making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here, it’s free.

Boston Beer (SAM) came out with quarterly earnings of $3.65 per share, missing the Zacks Consensus Estimate of $4.77 per share. This compares to earnings of $5.45 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -23.48%. A quarter ago, it was expected that this brewer would post earnings of $1.85 per share when it actually produced earnings of $1.64, delivering a surprise of -11.35%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Boston Beer, which belongs to the Zacks Beverages - Alcohol industry, posted revenues of $568.34 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 0.63%. This compares to year-ago revenues of $587.95 million. The company has topped consensus revenue estimates just once over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Boston Beer shares have lost about 10.9% since the beginning of the year versus the S&P 500's gain of 9.6%. While Boston Beer has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Boston Beer was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $4.48 on $553.87 million in revenues for the coming quarter and $9.51 on $1.94 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Beverages - Alcohol is currently in the bottom 11% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Molson Coors Brewing (TAP), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 6. This beer maker is expected to post quarterly earnings of $1.52 per share in its upcoming report, which represents a year-over-year change of -25.9%. The consensus EPS estimate for the quarter has been revised 0.5% lower over the last 30 days to the current level. Molson Coors Brewing's revenues are expected to be $3.11 billion, down 2.9% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Boston Beer Company, Inc. (SAM) : Free Stock Analysis Report Molson Coors Beverage Company (TAP) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research