SAM - The Boston Beer Company surges 8% on raising guidance

• The Boston Beer Company ( NYSE: SAM ) shows Q3 beat in topline revenue of $596.45M, beating consensus by $30.03M.
• Shipment volume was ~2.3M barrels, a 1.4% increase from the prior year.
• Depletions decreased 6% from the prior year, reflecting decreases in the company's Truly Hard Seltzer, Angry Orchard, Samuel Adams, and Dogfish Head brands, partially offset by increases in its Twisted Tea and Hard Mountain Dew brands.
• Gross margin of 43.2% increased from the 30.7% last year, primarily due to costs recorded, resulting from the slowdown of hard seltzer and in the current quarter from increased pricing partially offset by inflationary cost increases.
• Impairment of intangible assets reflects a $27.1M non-cash impairment charge recorded for the Dogfish Head brand, taken as a result of the company's annual impairment analysis as of September 1, 2022.
• Non-GAAP EPS of $3.82 beats consensus by $0.65 .
• "I continue to be optimistic about the long-term growth outlook for Boston Beer's diversified beverage portfolio," said Chairman and Founder Jim Koch. "Based on our year-to-date performance and our view on the remainder of the year, we have narrowed the range of our fiscal 2022 financial guidance. As we continue to navigate through this dynamic operating environment, we remain committed to investing in innovation and brand support across our Beyond Beer portfolio. We operate in attractive segments and believe our strong capabilities – combined with the top salesforce in beer – position us well to deliver long-term value."
• Contributor commentary on the stock with sell rating: ' Boston Beer Company Q3 2022 Earnings Preview: The Picture Is Not Looking Pretty ' and ' The Boston Beer Company: Poor Investment Proposition At Current Valuation '
• Overall SA Sell rating with a score of 2.33 ; Sell-side rating of Hold with 3.00 score and a price target of $345.5; Quant rating of Buy with 3.65 rating with highest factor grades to growth and lowest to profitability.
• FY22 Outlook : Depletion decreases: -4% to -7% from prior guidance of -2% to -8%; Shipment decreases: -4% to -7% from prior guidance of -2% to -8%; Gross Margin: 42% to 43.5% from prior guidance of 43% to 45%; Non-GAAP EPS: $7.00 to $10.00 ( vs. consensus $9.20 ) from prior guidance of $6.00 to $11.00.
• A comparative price performance of the stock with its peers and the broader market:

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