Boston Beer Co. (NYSE: SAM) reported Q3 EPS of $6.51, $2.01 better than the analyst estimate of $4.50. Revenue for the quarter came in at $525.25 million versus the consensus estimate of $520.87 million.

GUIDANCE:

Boston Beer Co. sees FY2020 EPS of $14.00-$15.00, versus the consensus of $12.63.

2020 Outlook

• The Company currently projects full year 2020 earnings per diluted share to be between $14.00 and $15.00. This projection excludes the impact of ASU 2016-09. The Company's actual 2020 earnings per share could vary significantly from the current projection. Underlying the Company's current 2020 projection are the following full-year estimates and targets:
• Depletions and shipments increase of between 37% and 42% of which between 1% and 2% of this growth is due to the addition of the Dogfish Head brands.
• National price increases of between 1% and 2%.
• Gross margin of between 46% and 47%.
• Increased investments in advertising, promotional and selling expenses of between $55 million and $65 million, a change from the previously communicated estimate of between $70 million and $80 million, primarily due to lower selling expenses. This does not include any changes in freight costs for the shipment of products to the Company's distributors.
• Non-GAAP effective tax rate of approximately 26%, excluding the impact of ASU 2016-09.
• Estimated capital spending of between $160 million and $190 million, a change from the previously communicated estimate of between $180 million and $200 million, most of which relates to continued investments in the Company's breweries.

2021 Outlook

The Company is completing its 2021 planning process and will provide further detailed guidance when the Company presents its full-year 2020 results. The Company is currently using the following preliminary assumptions and targets for its 2021 fiscal year:

• Depletions and shipments percentage increase between 35% and 45%
• National price increases of between 1% and 2%.
• Gross margin of between 46% and 48%.
• Increased investments in advertising, promotional and selling expenses of between $130 million and $150 million. This does not include any changes in freight costs for the shipment of products to the Company's distributors.
• Non-GAAP effective tax rate of approximately 26%, excluding the impact of ASU 2016-09.
• Estimated capital spending of between $300 million and $400 million, which could be significantly higher, if deemed necessary to meet future growth.

For earnings history and earnings-related data on Boston Beer Co. (SAM) click here.