Boston Beer Co Inc SAM tanked in Tuesday's extended session after the company offered a 2015 outlook below expectations.
Shares of the craft brewer changed hands recently at $287, down more than 7 percent.
Chief Executive Martin F. Roper said increasing competition will require higher spending on advertising and promotion.
Roper said the company is "committed to investment in innovation, commensurate with the opportunities and the increased competitive activity that we see."
The company forecast 2015 earnings of between $7.10 and $7.50 a share, versus Wall Street's expectation of $7.96 a share.
The company forecast advertising, promotional and selling expenses of between $25 million and $35 million, excluding higher freight costs.
The estimate includes $10 million to $15 million for its Alchemy and Science brands, which won't be recovered by the brands' 2015 sales.
In the recent fourth quarter, Boston's net income grew about 5 percent to $19.1 million, or $1.40 a share, from $18.1 million, or $1.33 a year earlier.
Revenue grew 6 percent to $217.8 million, from $205.4 million a year earlier.
Wall Street expected fourth-quarter earnings of $1.37 a share, on revenue of $235.9 million.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.