The Boston Beer Company (NYSE:SAM) reported third-quarter earnings that exceeded analyst expectations, yet its full-year guidance fell short, leading to a 3% drop in shares intra-day today.

The company posted adjusted earnings per share of $5.35, surpassing the Street estimate of $5.03. Revenue increased 0.6% year-over-year, reaching $605.5 million, just above the projected $605.14 million.

However, Boston Beer lowered its full-year 2024 earnings guidance to a range of $8.00 to $10.00 per share, below the Street consensus of $9.58 at the midpoint, citing softer trends in the beverage category.

In the third quarter, depletions, which measure sales to retailers, declined by 3%, and shipment volume fell by 1.9% to around 2.24 million barrels. Despite these declines, the company’s gross margin improved to 46.3%, up 60 basis points from the previous year, supported by price hikes and procurement efficiencies.