- Boston Beer(NYSE:SAM)shares sink 6% in postmarket trade after the firm cut its 2021 EPS forecast.
- It now expects2021 EPS to be between a loss of $1 and income of $1, down from its prior EPS guidance of $2-$6.
- This projection excludes the impact of accounting standards update (ASU) 2016-09.
- SAM also expects shipment growth and gross margins in 2021 to be below its prior guidance.
- Lower shipment growth is primarily a result of more aggressive wholesaler inventory reduction than expected, which affected its brand Truly.
- SAM expects 2021 gross margin of 38%-40%, due to higher-than-expected supply chain costs.
- It also estimates non-GAAP effective tax rate of ~43% in 2021, excluding ASU 2016-09 impact.
- For 2022, SAM expects gross margin of 45%-48% and non-GAAP effective tax rate of ~26%, excluding ASU 2016-09 impact.
- It estimates capital spending of $140M-$190M in 2022, which could be significantly higher, if necessary to meet future growth.
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