Boston Beer Co. Inc. (SAM) Thursday reported an increase in profit for the third quarter, as revenues surged amidst higher shipments and lower-than-expected operating costs. Shares of the beer company rose 9 percent in extended trading hours, following the news.
The Boston, Massachusetts-based beer company's third-quarter profit rose to $37.9 million or $2.79 per share from $25.7 million or $1.89 per share last year. On average, five analysts polled by Thomson Reuters estimated earnings of $2.32 per share for the quarter. Analysts' estimates typically exclude one-time items.
The company said profit growth was driven largely by higher shipment and lower than expected operating costs per barrel due to lower employee benefit costs and the timing of certain advertising promotional and selling expenses.
Revenues for the quarter rose to $288.8 million from $231.8 million last year. Analysts had a consensus revenue estimate of $258.6 million for the quarter. Core shipment volume rose 23 percent to 1.2 million barrels.
SAM closed Thursday's trading at $231.38, up $1.88 or 0.82%, on the NYSE. The stock further gained $20.62 or 8.91% in the after-hours trade.
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