What happened
Actions of Boston Beer (NYSE: SAM) It jumped more than 26% to a new closing high of $ 828.34 on Thursday, after the alcoholic beverage maker delivered successful results in the second quarter.
And that
Boston Beer revenue increased 42% year-over-year to $ 452.1 million, driven by a 39.8% increase in shipments. Meanwhile, net income soared 116% more, to $ 60.1 million, or $ 4.88 per share. Wall Street estimates were for earnings and earnings per share of only $ 426.2 million and $ 2.34, respectively.
Boston Beer’s shares soared higher on Friday. Image source: Getty Images.
The gains were fueled by strong sales from the company’s Truly Hard Seltzer and Twisted Tea brands, as well as sales of the Dogfish Head brands it acquired in 2019, which more than made up for declines in its Samuel Adams and Angry brands. Orchard.
“The growth of the Truly brand, led by Truly Hard Lemonade, has accelerated and continues to grow beyond our expectations,” CEO Dave Burwick said in a press release.
Now what
Truly’s growth is impressive, particularly in light of the increasingly intense competition facing the hard-seltzer brand from people like Anheuser-Busch InBev and Constellation marks. These beer giants recently launched brands like Bud Light Seltzer and Corona Hard Seltzer in an attempt to wrest the market share from Boston Beer.
“Since the beginning of January, Truly has increased its speed and market share sequentially, while other national, regional and local hard-seal brands have entered the category,” Burwick said. “It truly is the only tough seltzer, which did not show up earlier this year, to increase its turnout during 2020.”
With Truly Hard Seltzer, Boston Beer clearly has a winner on its hands in an important and fast-growing new market for alcoholic beverages, one that could continue to push its share price to new all-time highs in the days and weeks ahead.
