SAM - Boston Beer Company shares slump as full-year guidance disappoints

Sam Adams-parent Boston beer Company ( NYSE: SAM ) shares slumped in Thursday’s extended trading after posting a disappointing full-year forecast.

For the second quarter, the brewer beat on both top and bottom lines. The company posted GAAP EPS of $4.75 alongside revenue of $616.2M. Those figures pushed past the Wall Street consensus by  $0.29 and $12.73M, respectively.

The beat on the headline numbers came despite a 7% decrease in depletions led by declines in hard seltzer sales and a 260 basis point contraction in margins from the prior year quarter. Pricing action in Twisted Tea was credited with buoying the results.

"I continue to be optimistic about the long-term growth outlook for Boston Beer's diversified beverage portfolio, despite the greater than expected continuing decline in demand in the hard seltzer category that we have seen year to date,” Chairman and Founder Jim Koch said. “Based on our first-half performance and our view on the remainder of the year we have reduced our fiscal year 2022 volume and earnings guidance.”

The company now projects full-year earnings per diluted share to fall within a wide range of $6.00 to $11.00, revised from a prior $11.00 and $16.00. Analysts had anticipated $11.98.

Shortly after posting the severely pared-back guidance, shares of the Jamaica Plain-based brewer slid 11.36%.

Read more on the key details of the quarterly report

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