Shares of Boston Beer declined sharply in premarket trading after the maker of Sam Adams Lager said it could report a loss of $1 per share in 2021.
Boston Bear said in a filing with the Securities and Exchange Commission that it expects 2021 earnings to range between a loss of $1 per share and earnings of $1, which is lower than its previous guidance, which was pegged at $2 to $US$2. 6 per share is called profit.
Analysts polled by FactSet expected Boston Beer to report earnings of $5.69 per share for the year.
The company anticipates shipment growth will be lower, “primarily a result of more aggressive wholesaler inventory reductions than expected, primarily affecting Truly,” the company’s hard seltzer brand.
Boston Beer also said higher-than-expected supply-chain costs were leading to lower-than-expected gross margin estimates. Boston Beer’s gross margin is estimated at 38% to 40%.
The stock was down 9% to $445.01 in premarket trading.
Write to Joe Woelfel at [email protected]