Attention Seeking Stock: The Boston Beer Company Inc. (NYSE: SAM)

Elizabeth Villa

I am Elizabeth Villa and I have over 16 years experience in the financial services industry giving me a vast understanding of how news affects the financial markets.

I am an active day trader spending the majority of my time analyzing earnings reports and watching commodities and derivatives. I have a Masters Degree in Economics from Westminster University with previous roles counting Investment Banking.

Address: 4211 Angie Drive, Los Angeles, CA 90017, USA
Phone: (+1) 714-933-4836
Email: elizabeth.villa@up24news.com
Elizabeth Villa

BOSTON, July 11, 2019 – Shares of The Boston Beer Company Inc. (NYSE: SAM) showed the bearish trend with a lower momentum of -1.62% to $381.94. The company traded total volume of 244.977K shares as contrast to its average volume of 166.75K shares. The company has a market value of $4.31B and about 11.29M shares outstanding.

The Boston Beer Company, Inc. (SAM) reported first quarter 2019 net revenue of $251.70M, a boost of $61.20M or 32.1% from the same period last year, mainly because of a boost in shipments of 32.5%.  Net income for the first quarter was $23.70M, or $2.02 per diluted share, a boost of $14.40M or $1.24 per diluted share from the first quarter of 2018.  The noteworthy increase in net revenue, contrast to the first quarter of 2018, was driven by the planned acceleration in the timing of shipments during the year to support current and anticipated growth in demand.  The increase in net income reflects the higher net revenue, partially offset by increases in operating expenses and lower gross margins.

1st Quarter 2019 Summary of Results

Advertising, promotional and selling expenses increased $4.20M contrast to the first quarter of 2018, mainly because of increased investments in media and production, higher salaries and benefits costs and increased freight to distributors because of higher volumes.

General and administrative expenses increased by $4.00M from the first quarter of 2018, mainly because of increases in salaries and benefits costs and consulting costs.

During the first quarter, the Company recorded a net income tax expense of $6.10M or 20.6%, which consists of income tax expenses of $7.90M partially offset by a $1.80M tax benefit related to stock option exercises in accordance with ASU 2016-09. The Company’s effective tax rate for the first quarter, excluding the impact of ASU 2016-09, reduced to 26.5% from 28.0% in the first quarter of 2018.

The Company anticipates that its March 30, 2019 cash balance of $102.90M, together with its future operating cash flows and its available $150.00M line of credit, will be sufficient to fund future cash requirements.

The Company offered gross profit margin of 51.20%. The stock, as of recent close, has shown the weekly upbeat performance of 0.43% which was maintained at 58.59% in this year.

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Elizabeth Villa

I am Elizabeth Villa and I have over 16 years experience in the financial services industry giving me a vast understanding of how news affects the financial markets. I am an active day trader spending the majority of my time analyzing earnings reports and watching commodities and derivatives. I have a Masters Degree in Economics from Westminster University with previous roles counting Investment Banking. Address: 4211 Angie Drive, Los Angeles, CA 90017, USA Phone: (+1) 714-933-4836 Email: elizabeth.villa@up24news.com

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