Boston Beer Stock Moves Lower After Earnings Miss

The company slashed its full-year forecast on lower seltzer demand

Deputy Editor
Jul 22, 2022 at 10:46 AM
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The Red Sox are sliding down the stands the same way Boston Beer Company Inc (NYSE:SAM) is sliding down the charts. The alcoholic beverage giant announced a mixed second-quarter earnings report after the close yesterday, posting lower-than-expected earnings of $4.31 per share alongside a revenue beat. The brewery name also cut its full-year earnings forecast, citing falling demand for its Truly hard seltzer drink. No fewer than four analysts cut their price targets in response, with the lowest from MKM Partners to $279 from $334.

At last glance, SAM was down 2.7% to trade at $327.00 -- earlier as low as $316.20. The security has been struggling to rebound from its June 17 two-year low of $287. Despite a healthy 10% July gain before today, that rally was stopped short of the shares' 80-day moving average. Year-to-date, the equity is down 34.7%. 

Albeit amid light absolute volume, the options pits have been much more bullish than usual. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), SAM's 50-day call/put volume ratio of 2.11 ranks in the 98th percentile of its annual range. That sentiment appears to be holding true today, with calls running at double the intraday average. 

Furthermore, the security's Schaeffer's Volatility Scorecard (SVS) sits at a 90 out of 100. This means SAM has exceeded option traders' volatility expectations during the past year.



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