Boston Beer (NYSE:SAM) stock surged 7.6% in premarket action after beating Wall Street analyst estimates by a wide margin for the first quarter of 2021. The brewer’s results were helped by a jump in sales for its Truly hard seltzer brand.
In official statements released after market close yesterday, the company reported profit of $65.6 million, or $5.26 a share, more than triple its total of $18.2 million from Q1 2020. Analysts on average expected about half that profit, predicting earnings of $2.61 a share on sales of $477.3 million.
“The recently launched Truly Iced Tea Hard Seltzer has accelerated Truly brand growth, which has more than doubled since last year,” said Dave Burwick, CEO of Boston Beer.
“In the first quarter in measured off-premise channels, the Truly brand outgrew the hard-seltzer category by nearly 2X, or 50 percentage points, resulting in a share increase of 6.5 percentage points,” Burwick continued.
“The Truly brand has now reached a market share of over 28%, accounting for approximately 40% of all growth cases in the hard-seltzer category, which is two times greater than the next largest growth brand.”
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