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Boston Beer Company stock plunged Friday after the company reported much lower than expected earnings on Thursday and signaled that the once red-hot hard seltzer marker was showing signs of cooling.
Shares of the company behind Samuel Adams and Dogfish Head beers, Angry Orchard cider, Twisted Tea, and Truly Seltzer were down 25% as of 11:15 a.m. ET, a $227 drop. Year to date, the company is down roughly the same amount.
Admitting they had “overestimated the growth of the hard seltzer category,” company officials cut the company’s fiscal forecast. For the full year, the company now expects earnings of $18 to $22 a share, notable lower than its previously stated outlook of $22 to $26 a share. That’s even lower than where the forecast stood before the company raised it after its first quarter earnings.
Second-quarter profit slipped to $4.75 a share, far below the $6.61 analysts were expecting. But company officials remained optimistic.
“We recently announced plans to develop new innovative beverages with Beam Suntory that we are planning to launch in early 2022,” said founder and chairman Jim Koch in a statement. “We believe these new beverages will further demonstrate our ability to innovate and grow our business as drinker preferences evolve.”
As Boston Beer fell, shares of Snap soared, climbing more than 20% to an all-time high after a strong earnings beat. The company announced 3 million more daily active users than analysts were expecting—noting a 23% jump in users in just one quarter.
This story was originally featured on Fortune.com