Boston Beer stock slips ahead of earnings after MKM analyst warns revenue could miss on seltzer weakness

Shares of Boston Beer Co.
eased 0.2% in afternoon trading Wednesday, a day before the beer brewer was scheduled to report second-quarter results. MKM Partners analyst Bill Kirk cut his price target on the stock to $974 from $1,204, while reiterating his neutral rating, ahead of the earnings report. “With a slowing seltzer category and underwhelming on-premise contribution, we believe that Boston Beer’s 2Q is at risk for a topline miss and that forward guidance needs to be cut,” Kirk wrote in a note to clients. Boston Beer is slated to report earnings after Thursday’s closing bell. The FactSet consensus for second-quarter earnings per share is $6.60 and for revenue is $657.6 million. For full-year 2021, the company said it expects adjusted EPS of between $22.00 and $26.00, while the FactSet revenue consensus is $2.50 billion. The stock has tumbled 25.5% over the past three months, while the S&P 500
has tacked on 4.3%.

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