Boston Beer (NYSE) reported 16c per share, which was compared with EPS at $5.26 and an expected EPS at $2.04. In the same period net revenue fell 21% YoY, and missed consensus estimates of $446.3 millions.

In early Friday trading, shares traded over 3% lower than normal.

According to analysts’ expectations, SAM expects FY adjusted EBIT to range between $11 and $16, as opposed to $14.02 per share. SAM estimates that gross margin will range from 45% to 48% for the whole year.

“Despite our depletions decline, we gained dollar share in measured off-premise channels in the first quarter – the second-largest share gain among brewers,” said Boston Beer Chairman and Founder Jim Koch.

“We continue to believe we have strategies in place to get back to company-wide mid single-digit to double-digit depletions growth driven by broad-based growth across our entire portfolio of brands – especially as consumers drink more ‘Beyond Beer’ products – and via our strong innovation pipeline.”

Goldman Sachs analyst Bonnie Herzog reiterated a Neutral rating post earnings on expectations that the SAM stock will “remain pressured until more measurable signs of stabilization and/or improvements for the hard seltzer category emerge, which realistically could take more time.”

“While the stock has pulled back considerably in the last few months, we still see potential downside given lack of visibility and expect the stock to underperform tomorrow,” the analyst wrote in a client note.

Laurent Grandet, a Guggenheim analyst is positive. She reiterated her Buy rating with a target price of $520.00 per share.

“While we are a bit more optimistic that SAM will hit the low end of guidance, investors may be willing to see how the seltzer category and Truly settle into the summer, when the brand faces easier comps. We are positive on SAM after months of poor performance and guidance revision, as we think the stock has found its bottom in terms of valuation,” Grandet said.

By Senad Karaahmetovic