Boston Beer Co. Inc. SAM is scheduled to report first-quarter 2015 results on Apr 29, after the closing bell. In the last quarter, the company had delivered a negative earnings surprise of 7.3%. Let’s see how things are shaping up for this announcement.
Factors Influencing This Quarter
Boston Beer issued a conservative outlook for 2015 as it expects the competitive headwinds in the industry to intensify. On the one hand, the company’s focus on undertaking investments in innovation and enhancing supply chain network bodes well, while on the other, the increasing risk of a potential excise tax on spirits may adversely impact its financial performance.
Also, a look at the past four quarters gives us a mixed picture as the company delivered two positive and two negative surprises, with an average positive surprise of 3.97%. Thus, we remain cautious of the upcoming results.
Earnings Whispers
Our proven model does not conclusively show that Boston Beer is likely to beat earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for this to happen. This is not the case here, as you will see below:
Zacks ESP: Earnings ESP for Boston Beer is currently pegged at +1.45%. This is because the Most Accurate estimate of 70 cents stands above the Zacks Consensus Estimate of 69 cents.
Zacks Rank: Boston Beer carries a Zacks Rank #4 (Sell). The company’s Zacks Rank #4 combined with a positive EPS makes surprise prediction unlikely. We caution against stocks with a Zacks Rank #4 and 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks That Warrant a Look
Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:
Burlington Stores, Inc. BURL has an Earnings ESP of +2.50% and a Zacks Rank #2 (Buy).
American Eagle Outfitters, Inc. AEO has an Earnings ESP of +18.18% and a Zacks Rank #2.
Best Buy Co., Inc. BBY has an Earnings ESP of +3.45% and a Zacks Rank #3 (Hold).
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