Boston Beer Stock Sinks as Guidance Is Slashed. Truly Is Fizzling.

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Samuel Adams beer bottles are displayed on a shelf.

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Justin Sullivan/Getty Images)

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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.

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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]

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