Boston Beer Turns To Loss In Q3

(RTTNews) - Massachusetts-based alcoholic beverage producer, The Boston Beer Company, Inc. (SAM), turned to a loss in the third quarter, due to an unexpected slowdown of one of its products' growth. The adjusted earnings missed Street estimates. Net loss reported by the company was $58.42 million or $4.76 loss per share compared to a profit of $80.76 million or $6.51 earnings per share last year. On average 9 analysts estimated earnings of $4.01 per share for the quarter. The revenue for the company improved to $561.64 million in the quarter from $525.24 million in the same quarter last year. Analysts estimated revenue to be $531.45 million. The net income was primarily hurt by a $136 million increase in the cost of revenue due to the slowdown in the hard seltzer category growth. Dave Burwick, President, and CEO of the company said, "The unexpected rapid slowdown of hard seltzer category growth this summer significantly impacted our business. While Truly has continued to grow, gain share and solidify its long-term position, the slower category performance has reduced our full-year growth expectations for Truly to be between 20-25% year-over-year. In addition, the capacity and inventory we had built to take advantage of a higher-growth environment resulted in significant temporary costs this quarter."

After the result, the stock is trading at $503.00, down $14.22 or 2.75% in the aftermarket session after closing at $517.22 during the regular market. The shares opened at $512.50 in the morning after closing at $511.52 on the previous day.