Boston Beer Shares Jump As Q2 Results Beat View, Lifts Full-year Outlook

(RTTNews) - Shares of Boston Beer Co. Inc. (SAM) gained more than 9 percent in extended trades Wednesday after the alcohol beverages maker's results for the second quarter beat analysts' estimates and it raised its earnings guidance for fiscal 2013.

The company's net income for the second quarter grew 37 percent from last year, primarily due to shipment increases. This was partially offset by increased investments in advertising, promotional and selling expenses.

Boston Beer's second-quarter net income was $19.72 million or $1.45 per share, up from $14.35 million or $1.06 per share in the year-ago period. On average, five analysts polled by Thomson Reuters expected the company to report profit per share of $1.34 for the quarter. Analysts' estimates typically exclude special items.

Net revenue for the quarter rose 23 percent to $181.33 million from $147.50 million in the same period last year. Analysts had a consensus revenue estimate for the quarter of $175.38 million.

The increase in revenues was mainly due to core shipment growth of 21 percent.

Gross margin for the quarter was 54 percent, slightly lower than 54.5 percent in the same period last year. Depletions grew 24 percent from the prior year, while core shipment volume increased 21 percent to about 837,000 barrels.

Martin Roper, the Company's President and CEO, stated, "In the second quarter, our depletions growth accelerated from prior trends, due to the health of our Samuel Adams beers and the increased distribution of Angry Orchard, which was rolled out nationally during the second quarter of 2012. Our business is healthy and we believe that the strength we see in our main brands may well reflect a response to our increased investments in media, local marketing and point of sale and the efforts of our increased sales force." Looking ahead to fiscal 2013, Boston Beer raised its earnings outlook to a range of $5.10 to $5.40 per share, from the prior range of $4.70 to $5.10 per share. Analysts expect the company to report earnings per share of $4.98 for the year.

The company also raised its forecast for full-year depletions growth to a range of 17 percent to 22 percent from the prior range of 10 percent to 15 percent.

However, Boston Beer reduced its full-year gross margin target to between 52 percent and 54 percent from the prior range of between 53 percent and 55 percent, primarily due to increases in ingredient costs and product mix.

SAM closed Wednesday's trading at $178.98, down $1.47 or 0.81 percent on a volume of 50,045 shares. However, in after-hours, the stock gained $17.02 or 9.51 percent to $196.00.