SAM - Boston Beer stock slumps on surprise quarterly loss

Shares of Sam Adams-parent Boston Beer Company ( NYSE: SAM ) slid sharply in Wednesday’s extended session after the brewer reported an unexpected Q4 loss.

The Boston-based brewer reported a $0.93 per share loss, surprising the Street that had expected $0.65 in earnings per share for the quarter. The company notched $447.5M in revenue, exceeding the $392.8M consensus . Depletions decreased 3% as compared to the comparable prior year period, while gross margins also expanded to 37% from 28.7% in the prior year quarter, aided by price increases.

"Revenue growth was strong in the fourth quarter; however, margins came in below our expectations largely due to our production mix and supply chain inefficiencies,” CEO Dave Burwick commented. “Twisted Tea continues to experience industry-leading double-digit growth, while hard seltzer remains in decline.  We have new initiatives in place to improve Truly share trends and adapt our cost structure to the current volume environment, which we believe will lead to long-term success.”

Moving forward, the company anticipates another net loss for the first quarter of 2023. For the full-year, depletions are expected to decrease between 2% and 8%, as are shipments. The company expects to raise prices between 1% and 3% and achieve gross margins between 41% and 43%.

The company forecast a wide range for full-year earnings per share, setting a target between $6.00 and $10.00. The Street had anticipated a guide of approximately $11.47.

Shares of Boston Beer Company ( SAM ) slid 11.43% shortly after the earnings results were announced .

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