Boston Beer Plunges After Forecast Cut, Citing Hard Seltzer Woes
(Bloomberg) -- Boston Beer Co. shares plunged after the maker of Samuel Adams beer missed earnings expectations and cut its forecast, saying the hard seltzer boom is starting to fade.
Second-quarter profit slipped to $4.75 a share, the company said Thursday in a statement, falling well short of the $6.61 average of analysts’ estimates. Net sales rose to $602.8 million, but still missed Wall Street’s expectations.
“The hard seltzer category and overall beer industry were softer than we had anticipated,” Chairman Jim Koch said in the statement. The hard seltzer market is struggling with fewer new users and a proliferation of new brands, which he said is leading to “consumer confusion.”
Boston Beer, which makes Truly Hard Seltzer, now expects annual earnings of $18 to $22 a share, a $4 reduction at both the top and bottom of the range. Analysts had expected $24.40, according to the average of estimates compiled by Bloomberg.
The shares tumbled 20% as of 5:46 p.m. in aftermarket trading in New York. Boston Beer fell 4.7% this year through Thursday’s close.
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