SAM - Why Boston Beer Stock Dropped Today
2023-10-27 16:36:00 ET
Shares of alcoholic beverage maker The Boston Beer Company (NYSE: SAM) got creamed on Friday after the company reported financial results for the third quarter of 2023. Investors were primarily disappointed with the company's profits and outlook. And this is why Boston Beer stock dropped 12.4% on Friday.
Boston Beer stock is now down 4% in 2023, which seems appropriate given the stagnation in its growth. In Q3, the company's net revenue was up less than 1% year over year at $601.6 million. That said, its top line was largely what Wall Street had expected.
Boston Beer's bottom line held the larger disappointment. The company's Q3 net income was only $45.3 million, lower than estimates. Granted, that was markedly higher than net income of $27.3 million in the prior-year period. But higher salaries and other inflationary expenses limited some improvements to profitability.
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Why Boston Beer Stock Dropped Today