SAM - Why Boston Beer Stock Was Taking a Dive Today
2024-02-28 13:32:28 ET
Shares of Boston Beer (NYSE: SAM) were sliding Wednesday after the maker of Sam Adams beer, Truly hard seltzer, and other alcoholic beverages posted disappointing fourth-quarter results, continuing a recent pattern.
Revenue continued to move in the wrong direction with sales falling 12% for the fiscal quarter, or 3.1% on a 13-week comparable basis, to $393.7 million, which was well below estimates at $413.8 million. (The company's fiscal 2022 Q4 included an extra week, complicating direct comparisons.) Depletions, a proxy for end-consumer demand based on unit sales from distributors to retailers, were down 9% year over year, or 1% on a 13-week comparable basis.
Management cited continued declines in sales of Truly hard seltzer for the dip in revenue, though those were offset by rising sales of Twisted Tea, Sam Adams non-alcoholic beverages, and Dogfish Head canned cocktails.
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Why Boston Beer Stock Was Taking a Dive Today