Craft Brewers Alliance (NASDAQ: BREW) reported Q2 EPS of $0.07, $0.03 worse than the analyst estimate of $0.10. Revenue for the quarter came in at $58.5 million versus the consensus estimate of $59.48 million.

Components of anticipated 2015 financial results and developments

We are revising previously issued guidance regarding our anticipated full year 2015 results, with the exception of estimated average price increases, as follows:

• Owned beer shipment growth between 1% and 3%. The adjusted anticipated beer shipment growth reflects greater-than-anticipated challenges to the Redhook brand family outside of its home market.
• Average price increase of 1% to 2%. We also expect further improvements in our revenue per barrel as we experience a favorable shift in our product mix.
• Contract brewing revenue is expected to be flat compared to 2014, previously estimated to range from a decline of 10% to an increase of 10%.
• Gross margin rate of 30.5% to 31.5%, which is unchanged based on our continued efforts to optimize our brewing locations and improve our capacity utilization as we steer towards our gross margin expansion target of 35% in 2017.
• SG&A expense ranging from $58 million to $61 million. We are committed to keeping the high end of our SG&A expenses in line with topline performance, while ensuring the commercial programming is fully supported.
• Capital expenditures of approximately $16 million to $19 million, which were previously estimated at $17 million to $21 million. The decrease in our projected capital expenditures is due to the timing of certain planned projects. We continue to anticipate capital expenditures of approximately $17 million to $21 million in 2016. Our capital expenditures will support the recently announced brewery expansion projects, as well as continued investments in quality, safety, sustainability, capacity and efficiency.

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