Boston Beer slashes earnings forecast on supply-chain issues

Boston Beer Co.
SAM,
+0.82%
shares fell in the extended session Thursday after the beer maker slashed its earnings guidance in light of higher-than-expected supply-chain costs and reduced wholesaler inventories. Boston Beer shares fell 7% after hours, following a 0.8% gain in the regular session to close at $488.98. In a filing with the Securities and Exchange Commission, the company said it now expects full-year bottom line results of a loss of $1 a share to net income of $1 a share, down from a previous forecast of $2 to $6 a share. Analysts polled by FactSet had forecast earnings of $5.69 a share. “The estimated lower shipment growth is primarily a result of more aggressive wholesaler inventory reduction than expected, primarily affecting Truly,” the company said in the filing. Truly is the company’s hard seltzer brand. “Additionally, due to higher than expected supply chain costs, which include costs for additional damaged and expired inventory resulting from the lower shipment volumes, we estimate gross margins to be lower than expected.”