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The Boston Beer Company Shares Plummeted 8% on 2021 Guidance Withdrawal
Sep 9, 2021 8:08 PM - Davit Kirakosyan
Image credit: FMP
The Boston Beer Company, Inc. (NYSE:SAM) shares dropped more than 8% today morning, but slightly recovered in the afternoon, closing with 3.75% decline.
The reason was the company’s announcement according to which they would be withdrawing 2021 guidance of shipments/depletions +25% to +40% and EPS of $18 to $22 due to the drastic and volatile slowdown of the hard seltzer category. Additionally, the company will incur inventory write offs, shortfall fees to third party brewers, and other costs expected to take place during 2021.
Analysts at RBC Capital lowered their price target on the company’s shares to $627 from $1,134. While the news is unfortunate, the brokerage mentioned that it still sees the company growing topline at 14% over the next few years.
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