Shares of the Boston Beer Company (NYSE: SAM) slipped in pre-market trading on Friday after the brewer behind the Samuel Adams beer announced its Q1 earnings. The company’s losses widened in Q1 to $0.73 per share versus a loss of $0.16 in the same period last year and wider than analysts’ expectations of $0.29 per share.
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The company posted net revenues of $410 million in Q1, a decline of 4.7% year-over-year.
Boston Beer’s President and CEO Dave Burwick commented, “As we expected, our first quarter performance reflected strong growth in Twisted Tea, offset by continuing challenges in the hard seltzer category, and we are reiterating our 2023 depletion and shipment expectations. We also expect that our investments to fortify Truly, which are launching in the second quarter, will help us win in the marketplace over the long term.”
Looking forward, management now expects its depletion rate and shipment volumes to fall by 2% to 8%, respectively, in FY23 while earnings are projected to be in the range of $6 to $10 per share.
Analysts are sidelined about SAM stock with a Hold consensus rating based on two Buys, five Holds, and three Sells.
