The Boston Beer Co. (NYSE:SAM) saw its shares slide more than 7% in after-hours trading on Tuesday, after the brewing company posted fourth-quarter earnings that missed expectations.
The maker of Sam Adams forecast fiscal 2011 adjusted earnings in the range of $3.45 to $3.95 a share. The Street had predicted fiscal 2011 earnings of $3.92 a share.
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The craft brewer weighed in with strong profit growth, with net income improving to $12.2 million, or 87 cents a share, compared with earnings of $7.5 million, or 52 cents a share, one year ago. The company attributed the profit growth to increased core products shipment volume and wider margins “partially offset by increased advertising, promotional and selling expenses.”
Net revenue rose 8%, to $115.7 million, compared with year-ago sales of $107.19 million.
The results missed expectations; analysts had predicted earnings of 90 cents a share on revenue of $118.53 million, according to a poll by Thomson Reuters.
"We achieved depletions growth of 12% in the fourth quarter, and total depletions for the year grew 11.5% to 30.9 million case equivalents,” said Jim Koch, chairman and founder, in a statement. “This record total depletions for the fourth quarter and full year is attributable to our strong sales execution and continued support from our wholesalers and retailers.”
Shares of Boston Beer rose 64 cents, more than half a percent in Tuesday’s session. The stock was down $6.91, or 7.35%, in electronic trading after the market closed.