Boston Beer Profit Rises On Higher Shipments

(RTTNews) - The Boston Beer Company, Inc. (SAM) Wednesday said its profit for the third quarter improved from a year ago, due mainly to higher shipments, partially offset by increased investments in advertising, promotional and selling expenses and a write-down of land.

The company reported a third quarter profit of $25.7 million or $1.89 per share, an increase from $20.8 million or $1.53 per share in the year-ago quarter. On average, four analysts expected Boston Beer to earn $1.82 per share for the quarter. Analysts' estimates typically exclude one-time items.

Net revenue for the quarter rose 30 percent to $216.4 million from $166.4 million in the corresponding quarter last year. Three analysts had a consensus revenue estimate of $200.42 million for the quarter.

Core shipment for the quarter grew 29 percent.

Gross margin for the quarter was 53 percent, down from the 56 percent recorded a year ago, due mainly to increased brewery processing costs, higher ingredient costs and product mix effects.

For the full year 2013, Boston Beer now expect earnings in the range of $5.05 to $5.35, down from its previous forecast of $5.10 to $5.40. This is due mainly to land write-down and increased brand investments, estimated to be partially offset by increased shipment volumes.

Full year 2013 capital spending is now expected in the range of $100 million to $120 million, from the previously estimated $100 million to $140 million. Full-year 2014 capital spending is now projected between $140 million and $180 million, an increase from the prior estimate of $100 million to $130 million.

SAM closed Wednesday's regular trade at $247.70, up $2.00 or 0.81%, on the NYSE.