Shares Boston Beer Co. rallied after hours on Thursday after the alcoholic-beverage maker reported second-quarter results that beat estimates, as the Fourth of July holiday and demand for Twisted Tea helped make up for weaker seltzer demand.
The company — which makes beverages such as Samuel Adams beer, Truly seltzer and Twisted Tea — reported net income of $58 million, or $4.72 a share, compared with $53.3 million, or $4.31 a share, in the same quarter last year. Revenue fell 2.1% to $603.3 million, compared with $616.2 million in the prior-year quarter.
Analysts polled by FactSet expected Boston Beer
to earn $3.38 a share, on revenue of $590 million.
Shares jumped 9% after hours on Thursday.
“As we expected, our second-quarter performance reflected strong growth in Twisted Tea, offset by continuing challenges in the hard-seltzer category,” Chief Executive Dave Burwick said in a statement.
Management stuck with its full-year per-share profit outlook of $6 to $10, as well as its outlook for fewer shipments and alcohol sales to retailers. But it said it expected higher advertising and promotional expenses.
“Based on our second-quarter financial performance, we plan to increase our balance of year spend behind both the Truly and Twisted Tea brands, as we believe our messaging is effective and the business will respond over the short- and longer-term to these investments,” Burwick said.
Ahead of the earnings, TD Cowen analyst Vivien Azer noted that “trends in hard seltzer continue to be lackluster.” Seltzer demand has suffered over recent years as more brewers launched brands that were often too similar to one another.