Boston Beer Co., Inc. (SAM), Tuesday reported an increase in fourth quarter profit, primarily the result of increased core shipments and improved gross margins. Driven by core volume gains, revenues for the quarter grew 3% from a year ago.
Net income of Boston, Massachusetts-based Boston Beer increased to $7.46 million or $0.52 per share from $3.60 million or $0.25 per share in the same quarter a year ago.
On average, three analysts polled by Thomson Reuters expected earnings of $0.58 per share for the quarter. Analysts' estimate typically excludes one-time items.
Profit for the quarter increased primarily due to higher core shipments, improved gross margin and a reduction of impairment charges, offset by increases in the provision for income taxes and general and administrative expenses.
Net revenue increased 3% to $107.2 million from $103.78 million in the year-ago quarter, yet missing street estimates of $110.83 million for the quarter.
Operating income was $12.89 million, compared to $5.99 million in the prior-year quarter. Both core product depletions and core product shipments increased 5%.
Gross margin at 52% represented an increase of 5 percentage points over the fourth quarter 2008 gross margin.
For full year 2009, net income surged to $31.12 million or $2.17 per share from $8.09 million or $0.56 per share a year ago. Net revenue rose to $415.05 million from $398.40 million in the prior year. Street analysts' expected earnings of $2.22 per share on revenues of $417.63 million for the year.
SAM closed Tuesday's regular trading at $51.74, up $0.59 or 1.15%, on a volume of $0.11 million shares.
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