Boston Beer stock sinks after Q4 results
Shares of The Boston Beer Company (SAM) fell sharply on Wednesday. The company behind Sam Adams beer reported fourth-quarter results that fell short of analyst estimates on both the top and bottom lines. It also announced that CEO and President Dave Burwick is retiring, effective April 1.
Yahoo Finance's Julie Hyman and Josh Lipton break down the results.
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Editor's note: This article was written by Stephanie Mikulich.
Video Transcript
JULIE HYMAN: Boston Beer. Those shares are lower today after the company reported a miss on its top and bottom lines for the fourth quarter. The maker of Sam Adams and other brands also announced that CEO and President Dave Berwick will be retiring in April. That's a big change to the shares are down by 17% here.
The company has been sort of struggling for a little bit here. And so there's more discussion of that today. One of the things that Boston Beer like some other of its alcohol peers were hurt by was the pivot into hard seltzer, which then quickly fell out of fashion more quickly than the alcohol industry anticipated.
And truly hard seltzer is their product there that did worse than expected. They did a little bit better in some other of their categories. But that's one that continues to hurt.
JOSH LIPTON: Yeah, I'm looking at just some notes here, too. Goldman saying talking about a lack of near-term growth catalysts. They told their clients they continue to see what they call a negative risk reward maintain a sell on the name.
You look at analysts how they feel about this one, Julie. I mean, they might like the beer. But most are kind of lukewarm on the stock here. 60% still on the sidelines.
JULIE HYMAN: Yeah, definitely. And as you can see, it's been a very volatile past year for the company.
