Boston Beer Company Inc "Still Tough Out There; Stay Neutral" (Neutral) Grom

Research evidence excerpt

Boston Beer Company Inc "Still Tough Out There; Stay Neutral" (Neutral) Grom

Global Research

24 July 2026ab

Boston Beer Company Inc Equities

AmericasStill Tough Out There; Stay Neutral

Distillers & Brewers

12-month rating Neutral

Weaker Sales and OPM Drives 2Q EPS Miss

SAM reported a 2Q EPS miss, as slightly stronger GM (+43bps ahead Street) was more 12m price target US$190.00

than offset by weaker top line and higher AP&S/G&A expenses. While the company

reiterated its FY26 EPS outlook, it raised the low end of gross margin guidance and

Price (23 Jul 2026) US$174.51

reduced planned advertisement by ~$20M following weaker returns (see details below).

Much of the focus on the call centered less on the quarter itself and more around the RIC: SAM.N BBG: SAM US

path forward, particularly as YTD depletions/shipments are towards the low end of the

Trading data and key metrics

full year outlook with the high end requiring a more meaningful improvement in both

52-wk range US$260.05-161.08

category and share performance. Despite management emphasizing some optimism for

trends to improve, we think the high end at this stage appears unlikely. With valuation Market cap. US$2.12b

more or less in-line relative to peers vs. historical averages, we think the risk/reward Shares o/s 12.2m (COM)

appears balanced and would wait until there are greater signs that an inflection is taking Free float 71%

shape before becoming constructive. Avg. daily volume ('000) 90.3

Avg. daily value (m) US$16.7

FY26 EPS Unchanged, But GM Range Narrowed and A&P Spending Lowered Common s/h equity (12/26E) US$0.76b

SAM reiterated its FY26 EPS guidance which calls for Adj. EPS in the range of $8.50- P/BV (12/26E) 2.4x

$10.50, compared with Street at $9.53 heading into the print.