Boston Beer Loses Fizz After Underwhelming 4th Quarter
on 09/03/11 at 10:21 amBeer
Boston Beer (SAM) dropped 11% after hours after the Sam-Adams brewer posted worse than expected fourth quarter earnings and management expressed concerns about the pricing environment going forward.
Boston Beer posted earnings of 87 cents per share, versus expectations for 90 cents, and revenues of $115.7 million against expectations for $118.5 million. Competition is apparently beginning to catch up with the company, after a tremendous run for the stock. Shares have more than doubled since the beginning of 2010.
“While we continue to see expanded distribution of domestic specialty brands and local craft brands, which is increasing competition in the category, we are happy with the health of our brand portfolio,” said Chairman Jim Koch.