The Boston Beer Company Beats Q3 Estimates, Surges 9%
Boston Beer Co Inc (NYSE: SAM) reported third quarter 2014 financial results Thursday.
The company reported net revenue of $269.7 million, above estimates of $258.57 million, an increase of $53.3 million or 25 percent over the same period last year, mainly due to core shipment growth of 23 percent.
Net income for the third quarter was $37.9 million, or $2.79 per diluted share, above estimates of $2.32, an increase of $12.2 million or $0.90 per diluted share from the third quarter of 2013.
This increase was primarily due to shipment increases and lower than expected operating costs per barrel during the third quarter due to lower employee benefit costs and the timing of certain promotional and selling expenses.
Jim Koch, Chairman and Founder of the company, commented: "Our depletions growth this quarter was strong and a result of a number of factors, including effective sales execution, support from our distributors and retailers, not to mention the quality of our beers, innovation and strong brands.”
The company's 2015 outlook noted plans for increased spending on promotion and estimated full-year 2015 capital spending between $80 million and $100 million, which could be significantly higher depending on capital required to meet future growth. These estimates include capital investments for existing Alchemy & Science projects of between $5 million and $7 million.
Boston Beer traded at $252.00 in the after market session, up 8.9 percent.
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