Boston Beer Options Suggest 6.3% Share Price Movement Post-Earnings

Boston Beer (SAM) options volume is 1.1x normal, with calls leading puts 9:4, implying a 6.3% move in share price post-earnings. Implied volatility suggests a near 6.3% move, or $12.89, after results are released. The median move over the past eight quarters is 5.3%.

Boston Beer Company Inc (SAM), a leading player in the craft beer industry, reported its second-quarter earnings on Thursday, July 24, 2025. The company's financial performance was mixed, with revenue and earnings showing varied results compared to analyst expectations.

Financial Performance

Boston Beer reported a second-quarter revenue of $587.95 million, missing analyst estimates of $596.43 million [1]. However, the company's earnings per share (EPS) came in at $5.45, beating estimates of $4.04 per share [2]. Total revenue for the second quarter was up 1.5% due to increased pricing and favorable product mix, partially offset by lower volumes. Shipment volume was down 0.8% year-over-year to approximately 2.1 million barrels [1]. The company ended the quarter with $212.43 million in cash and cash equivalents.

Operational Highlights

The company saw shipment declines in Truly Hard Seltzer and Samuel Adams brands during the period. However, the decline was offset by the growth in Sun Cruiser and Dogfish Head brands, indicating a shift in consumer preferences [2]. Boston Beer's gross profit increased by 9.8% to $292.5 million, driven by improved brewery efficiencies and cost reductions [2]. Operating income also increased by 15.9% to $82.1 million, reflecting higher gross profit and controlled operating expenses [2].

Market Reaction

Boston Beer shares were up 7.67% in after-hours trading, trading at $217.28 at the time of publication [1]. The company's options market reacted to the earnings report, with options volume at 1.1x normal, with calls leading puts 9:4, implying a 6.3% move in share price post-earnings [3]. Implied volatility suggests a near 6.3% move, or $12.89, after results are released [3].

Guidance and Outlook

Boston Beer affirmed its full-year 2025 earnings guidance of $8 to $10.50 per share versus estimates of $9.13 per share [1]. The company also raised its gross margin guidance due to better-than-expected brewery efficiencies in the first half of the year [1]. The company anticipates recognizing approximately $33 million in shortfall fees in the future, with $11 million expected in the remainder of 2025 and $22 million in subsequent years [2].

References

[1] https://www.benzinga.com/markets/earnings/25/07/46619220/boston-beer-q2-earnings-revenue-miss-eps-beat-truly-sam-adams-shipments-decline-but-overall-market-share-grows
[2] https://www.tradingview.com/news/tradingview:e8d0cbca68881:0-boston-beer-co-inc-sec-10-q-report/
[3] https://www.investing.com/news/earnings/boston-beer-shares-surge-8-as-earnings-soar-past-estimates-93CH-4152035