Boston Beer Co. (NYSE: SAM) reported Q2 EPS of $4.31, $0.48 worse than the analyst estimate of $4.79. Revenue for the quarter came in at $655 million versus the consensus estimate of $628.99 million.

GUIDANCE:

Boston Beer Co. sees FY2022 EPS of $6.00-$11.00, versus the consensus of $11.67.

The Company currently projects full-year 2022 Non-GAAP earnings per diluted share of between $6.00 and $11.00 a change from the previous estimate of between $11.00 and $16.00. This projection excludes the impact of ASU 2016-09 and is highly sensitive to changes in volume projections particularly related to the hard seltzer category and supply chain performance as well as inflationary impacts. The Company's actual 2022 earnings per share could vary significantly from the current projection. The 2022 fiscal year includes 53 weeks compared to the 2021 fiscal year which included only 52 weeks. Underlying the Company's current 2022 projection are the following full-year estimates and targets:

• Depletions and shipments decrease of between 2% and 8% a change from the previous estimate of an increase of between 4% and 10%, the revision is driven by a change in expectations in the Company's Truly hard seltzer business and the launch timing of Hard Mountain Dew in certain states moving into 2023. The Company estimates the 53rd week will have a positive impact of between 1 and 1.5 percentage points on its depletions and shipments growth rates for the full year and between 4 and 6 percentage points on its depletions and shipments growth rates for the fourth quarter.
• National price increases of between 3% and 5%.
• Gross margin of between 43% and 45% a change from the previous estimate of between 45% and 48% due to the impact of lower volume expectations and continuing supply chain impacts. The Company continues to expect to cover higher commodity costs through pricing.
• Decreased investments in advertising, promotional and selling expenses of between $30 and $50 million, a change from our previous estimate of a decrease of between zero and $20 million, reflecting our reduced volume expectations. 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 between 26% and 27%, excluding the impact of ASU 2016-09, a change from the previous estimate of approximately 26%. This effective tax rate also excludes any potential future changes to current federal income tax rates and regulations.
• Estimated capital spending of between $110 million and $140 million a change from the previous estimate of between $140 million and $190 million.

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