** charts after earnings **
Shares of Boston Beer (SAM) got hammered Friday after the company overestimated demand for its Truly seltzer brand for the second quarter. At one point in the morning, the stock was down 26%, to $701.68, its worst daily percentage decline on record, according to Dow Jones Market Data. The lowest close was $659.23 on July 23, 2020—exactly a year ago.
The company both missed earnings expectations and dropped its outlook for full-year earnings and shipments. After the report Thursday, Goldman Sachs analyst Bonnie Herzog told clients that she was cutting her rating on Boston Beer to Neutral from Buy and slashing her price target to $875 from $1,550.
“We are very surprised by the magnitude of this quarter’s miss which came in well below expectations despite mgmt’s consistently confident tone as recently as our May 18 Global Staples Forum,” Herzog wrote. “Bottom line, we believe today’s results could see investors question SAM’s growth strategy.”
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