E-Malt.com News article: USA, MA: Boston Beer's fourth-quarter profit rises

Boston Beer Co., brewer of Samuel Adams Beer, said on February, 22, that its fourth-quarter profit more than tripled due to a 23 percent jump in revenue and a favorable tax settlement, CBS News reported on February, 22.

Net income for the October-through-December period was $17.8 mln, or $1.33 per share, up from $12.2 mln, or 87 cents per diluted share, in the fourth quarter of 2010.

The company got a significant lift from a state income tax settlement that added 16 cents per share to the bottom line.

Revenue was $142.1 mln, up from $115.7 mln. Boston Beer said the increase was due mostly to increased shipments, with some help from "minor" price hikes.

Excluding the tax settlement gain, its earnings per share amounted to $1.17 in the latest quarter.

The results topped the consensus estimates of analysts surveyed by FactSet Research, who were expecting earnings of $1.16 per share on revenue of $131.6 mln.

The company said it increased advertising, promotional and selling expenses by 14 percent to $5 mln in the quarter.

Chairman and founder Jim Koch cited strong early results for new beers, including Samuel Adams Alpine Spring and Whitewater IPA, as reason for optimism that the sales increases will continue this year.

"While it is too early to judge repeat purchase, we believe they will help us start 2012 strong and our challenge will be maintaining this momentum," he said.

Boston Beer, which brews and sells more than 50 styles of Samuel Adams beer, said it estimates 2012 earnings at $3.80 per share to $4.20 per share. The mid-point of that range would represent a 7 percent increase over last year's earnings, excluding one-time items. Analysts had been expecting $4.20 a share.

For the full year, net income was $66.1 mln, or $4.81 per share, up from $50.2 mln, or $3.52 per share. Revenue rose 11 percent to $513 mln from $463.8 mln.

Boston Beer shares jumped $4.37, or 4.4 percent, to $104.58 during the regular trading session. In after-hours activity following the release of the earnings report, they gave back $1.08, or 1 percent, to $103.50.


24 February, 2012