Shares of Boston Beer (SAM 4.22%) were breaking out today after the craft brewer and malt beverage maker beat top-line expectations in its fourth-quarter earnings report.

While the company is still facing a number of challenges, there are signs in the report that the Sam Adams parent is finally starting to turn the corner. As of 10:39 a.m. ET, the stock was up 4.7% on the news.

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Sam Adams breaks out the bubbly

Boston Beer is still facing general headwinds, but the quarterly trends showed improvement from earlier in the year. Depletions were flat and shipments were down 0.5%, showing flat volume trends at the consumer level. Revenue in the quarter ticked up 2.2% to $402.3 million, benefiting from price increases, which was better than estimates at $389.2 million.

Gross margin was up 230 basis points to 39.9% due to higher prices and procurement savings. The company is still facing declines in sales of Truly Hard Seltzer, though that was offset by growth in brands like Twisted Tea, Hard Mountain Dew, and Sun Cruiser.

Other operating costs (like advertising, promotional, selling, and general and administrative) rose in the quarter, and the company finished with an adjusted per-share loss of $1.68, compared to a per-share loss of $1.49 in the quarter a year ago and the consensus at a loss of $1.33 per share. Boston Beer's business is seasonal, its profits skewed toward the summer months.

CEO Michael Spillane said, "The fourth quarter provided a solid finish to 2024 with flat depletions, gross margin expansion and strong cash generation. We are entering 2025 as a stronger company focused on end-to-end execution, which is showing progress in a dynamic operating environment."

What's next for Boston Beer

Looking ahead to 2025, the company expects more or less flat depletions and shipments and sees price increases lifting revenue 1%-2%. On the bottom line, it called for generally accepted accounting principles (GAAP) earnings per share of $8.00-$10.50, which is down slightly at the midpoint from 2024's total of $9.43. That range was also worse than the consensus of $11.30, though the guidance could be conservative.

Given the weak guidance, today's gains are somewhat surprising, but expectations had already fallen substantially for Boston Beer. While that's not a reason to buy the stock, it should help provide a floor.