Craft Brewers Alliance (BREW) Misses Q3 EPS by 13c; Tightens Outlook

Craft Brewers Alliance (NASDAQ: BREW) reported Q3 EPS of $0.00, $0.13 worse than the analyst estimate of $0.13. Revenue for the quarter came in at $52.9 million versus the consensus estimate of $58.03 million.

GUIDANCE:

Based on our solid year-to-date performance, we are updating and tightening our guidance as follows:

• Total depletions and shipments ranging between a decline of 1% and an increase of 1%, reflecting continued progress in harmonizing our supply chain.
• Average price increases of 2% to 3%, reflecting improvements in revenue management and lower federal excise taxes.
• Total gross margin rate of 33.0% to 34.0%, reflecting increases in net revenue per barrel, continued improvements in brewery operations, lower fixed overhead, and ongoing efforts to stabilize pub operations.
• SG&A expense ranging from $62 million to $63 million, as we continue to reinvest cost savings into our brands and expand our consumer and trade marketing programming.
• Capital expenditures of $16 million to $17 million. Due to variability in the timing of certain significant progress payments related to construction of the new 100,000-barrel Kona brewery, there could be a shift of up to $6 million from this year into 2019.
• Effective tax rate of 25.5%, a decrease of 250 basis points from the previously communicated tax rate guidance, primarily as a result of the IRS’s clarification that certain business expenses continue to qualify for a 50% deduction for income tax purposes.

For earnings history and earnings-related data on Craft Brewers Alliance (BREW) click here.

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