The Boston Beer Company, Inc. (NYSE:SAM) faced a significant setback on February 29, 2024, as its stock value took a nosedive following the release of disappointing fourth-quarter results for fiscal year 2023.
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Key factors contributing to this decline included a 12% decrease in net revenue to $393.7 million, falling short of the expected $413.8 million. Depletions saw a 9% drop, while shipments decreased by 12.2%. The company also reported an EPS loss of $(1.49), well below the consensus estimate of $(0.25).
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Despite these challenges, Boston Beer’s gross margin saw a slight expansion to 37.6% in the quarter. Looking ahead to fiscal year 2024, the company expects depletions and shipments to range from low single-digit declines to low single-digit growth, with a projected EPS of $7.00 to $11.00, compared to the consensus estimate of $11.39.
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Furthermore, Boston Beer announced the retirement of Dave Burwick as President and CEO, effective April 1, 2024, with Michael Spillane set to take over on the same day. This news, coupled with the disappointing financial results, led to a sharp decline in the company’s stock value, with shares plummeting by 13.8% to $319.13 as of the latest check on Wednesday.
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Investors are expressing concerns about Boston Beer’s revenue trajectory and profitability outlook based on its recent performance and future projections.
Boston Beer Company, Inc. (SAM) Stock Update: Price Surges During Trading Hours, Drops After Market Close
On February 29, 2024, Boston Beer Company, Inc. (SAM) had an eventful day in the stock market. The company’s stock closed at $369.50, near the top of its 52-week range and above its 200-day simple moving average. This indicates that SAM has been performing well in the market recently.
Throughout the trading day, SAM experienced a price increase of $9.97, representing a 2.77% rise in its share price. This positive price momentum may have been driven by a variety of factors, such as strong financial performance, positive news about the company, or overall market trends.
However, after the market closed, SAM’s stock price dropped significantly in after-hours trading, falling by $42.50. This sudden drop may have been influenced by a variety of factors, such as profit-taking by investors, negative news about the company, or broader market volatility.
It is important for investors to closely monitor SAM’s stock performance and stay informed about any developments that may impact the company’s share price. While the stock experienced a price increase during regular trading hours, the significant drop in after-hours trading serves as a reminder of the volatility of the stock market and the importance of staying vigilant as an investor.
Boston Beer Company Inc. (SAM) Reports Mixed Financial Results in Q4 2024: Revenue Decline but Increased Net Income
On February 29, 2024, Boston Beer Company Inc. (SAM) saw its stock performance reflect the company’s recent financial results. According to data from CNN Money, SAM reported total revenue of $2.01 billion for the past year, with a decrease of 3.91% compared to the previous year. In the fourth quarter, the company reported total revenue of $393.72 million, which remained flat compared to the previous quarter.
Despite the decrease in total revenue, SAM managed to increase its net income by 13.36% since last year, reporting a net income of $76.25 million for the year. However, in the fourth quarter, the company reported a net loss of $18.12 million. This represents a significant decrease from the previous quarter but a slight increase from the same period last year.
In terms of earnings per share (EPS), SAM reported $6.21 for the past year, showing a 14.24% increase compared to the previous year. However, in the fourth quarter, the company reported a negative EPS of -$1.49, which represents a significant decrease of 140.23% compared to the previous quarter.
Overall, Boston Beer Company Inc. faced challenges in the fourth quarter of 2024, with a decrease in total revenue and a net loss. Despite these challenges, the company managed to increase its net income and EPS compared to the previous year. Investors should closely monitor SAM’s financial performance in the coming quarters to assess the company’s ability to overcome these challenges and drive growth in the future.
