Bethany Biron/Business Insider
Boston Beer Company tumbled 26% on Friday after revealing a bruising earnings miss the day prior.
On an earnings call Thursday, the Sam Adams maker reported that earnings per share fell 28% short of expectations, coming in at $4.75 versus an anticipated $6.69. Revenue came in at $603 million versus an expected $658 million.
Executives blamed the miss on overestimated demand for Truly, Boston Beer's hard seltzer brand, and downgraded their outlook for the rest of the year. Expected adjusted EPS for the year was downgraded from a range of $22-$26 to $18-$22.
Boston Beer's off-target expectations were a function of slowing growth in a maturing market, new competition, and pandemic restrictions, executives said.
"While we are in a very competitive business, we are confident in the continued growth of our current brand portfolio and innovations and we remain prepared to forsake short-term earnings as we invest to sustain long-term profitable growth," said CEO Dave Burwick.
Boston Beer Company stock was trading at $701.25 as of 10:15 a.m. ET Friday, down 26%
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