Share Prices for Boston Beer Experience a Plunge
As per the latest reports, the share prices of Boston Beer have ended up experiencing a plunge. The data shows that for Friday’s premarket trading, the share prices of Boston Beer have plunged more than 20%.
The share prices for Boston Beer ended up experiencing a plunge right after the company shared its earnings report for the second quarter of 2021. According to figures, Boston Beer ended up facing a loss in terms of earnings for the second quarter of 2021.
The firm revealed that for the second quarter of 2021, the brewing giant’s analysts had to cut the price-targets. Even several analysts from other major stock markets confirmed that the target prices were cut into half looking at the sales figures of the company.
Another major factor that ended up affecting the share prices of the company was the downgrade it had recently faced. According to the brewing giant, it had recently been downgraded by one of the major investment banks in the United States, Goldman Sachs.
While sharing the figures for its earnings for the second quarter of 2021, the company had to admit its overestimation. The company revealed that in terms of its hard-seltzer category, the company had definitely made an overestimation.
As a result, the company ended up facing a lot of loss in the second quarter of 2021. Although the company came true with its overestimation, yet the truth did not save the company from losing trust from many investors.
As of Friday, July 22, 2021 trading, the company ended up facing huge loss in terms of its share prices. As per figures, the company experienced 20.12% fall in terms of its share prices in the premarket trading on Friday.
After the 20.12% plunge, the company’s stock prices in the premarket trading came all the way down to $756.85. The company also shared the profit it made in the second quarter of 2021, which was $59.2 million. The company revealed that it only experienced $4.75 increase in the share prices in the second quarter of 2021.
However, in the same quarter of 2020, the share price increase was for $4.88. Surprisingly, the analysts had predicted that for the second quarter of 2021, the gains in the share price for Boston Beer wold be of $6.6. This means that the company made an overestimation when predicting rise in the price for the company’s shares.
The company also revealed that compared to the same quarter of last year, its sales have increased by 33.3%. However, the revenue that the analysts had predicted for the Q2 of 2021 was also an overestimation.
According to the firm, it had estimated a revenue of $657.6 million, whereas, it managed to generate $602.8 million.