A handful of the beer company can be the basis for the craft beer industry. A quick look at industry show you company Redhook, Sierra Nevada, Dogfish Head, and of course, the Boston Beer Company. Samuel Adams brewer, has been a huge success. That may not be history much longer however. The company recently released its results for the first quarter of 2011 and was significantly different than in the preceding year.
Declining shares
Firstly, as an observer will messages is the fact that the shares in Sam Adams decreased by almost 13% of the tail end of the first quarter. Earnings per share also decreased slightly, with investors realize $ 3.70 per share rather than $ 3.81 per share is calculated. While it may not seem much, is it really in a very short time.
Profit loss
Score is a measure of success for any company. Sam Adams has traditionally had very strong results regardless of what the market can be thrown at the brewery. This was not the case this time and earnings plunged by 36 percent over what they were at the same time, 2010. It was a nasty shock to investors, which contributed to the reduction of shares on the market after investors moved.
Not as bad as it seems
While the information above may make it seem as if Sam Adams has very difficult that this year, it is certainly not the case. The company still enjoying remarkable performance of a small brewery and the earnings revisions have considerably decreased. It is a good sign that things pick back up, and that Boston Beer co. continue to benefit from their fixed investor base loyalty.
Jim Koch is optimistic about the company's results and points to the earnings revisions release as a sign of strong sales and support. He also point to new beer that will be hitting the market that will attract even more customers to make Sam Adams as their preferred beverage-format as their new Sam Adams Seasonals lineup, their new Rustic Saison, East-West Kolsch and their latitude 48 deconstructed brews.
Sam Adams may have hit a rough patch in early 2011, most experts believe that the company still will pull through the rest of the year, with exceptional financial prospects.
Scribblies Cervesia,
Dustin Canestorp
Dustin Canestorp is the founder and General beer army. Join beer army led BeerArmy.comin. Take a stand and let the world know your position. If you intend to drink, drinking beer!
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