Boston Beer’s Low Shipment Growth

Shares of the Boston Beer Company (NYSE: SAM) fell 10.76% in after-hours trading on Thursday after announcing that it was expecting a quarterly loss due to lower shipment growth. Details: The company, which originally expected income to be between $2 and $6 per share, now projects a loss of $1 per share due to gross margins impacted by aggressive wholesaler inventory reductions, which primarily affected the company's hard seltzer brand Truly. Boston Beer is also seeing higher supply chain costs. Glass Half Full: Despite the headwinds, the company says that the final results are not yet complete and the financials might change. Background: Boston Beer was a good stock during the pandemic lockdown in 2020. As more consumers purchased beer, shares of the stock soared. But demand has changed and the stock is down 46% in the past year. Final Thoughts: Boston Beer is scheduled to report earnings on February 16. The stock could rebound, but investors should be cautious. Hope you enjoyed this commentary. Please subscribe to Early Bird, a free daily newsletter that helps you identify investment trends: https://earlybird.email/

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Boston Beer’s Low Shipment Growth

bearish

Shares of the Boston Beer Company (NYSE: SAM) fell 10.76% in after-hours trading on Thursday after announcing that it was expecting a quarterly loss due to lower shipment growth.

Details: The company, which originally expected income to be between $2 and $6 per share, now projects a loss of $1 per share due to gross margins impacted by aggressive wholesaler inventory reductions, which primarily affected the company's hard seltzer brand Truly. Boston Beer is also seeing higher supply chain costs.

Glass Half Full: Despite the headwinds, the company says that the final results are not yet complete and the financials might change.

Background: Boston Beer was a good stock during the pandemic lockdown in 2020. As more consumers purchased beer, shares of the stock soared. But demand has changed and the stock is down 46% in the past year.

Final Thoughts: Boston Beer is scheduled to report earnings on February 16. The stock could rebound, but investors should be cautious.

Hope you enjoyed this commentary. Please subscribe to Early Bird, a free daily newsletter that helps you identify investment trends: https://earlybird.email/

read-time
1 min
420.91
Target Price
2/ 10
Confidence
1-2 Weeks
Timeframe
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Earnings Release
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News
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SEC
Filing
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