BOSTON (AP) — Second-quarter net income jumped 37 percent at the Boston Beer Company Inc. as it shipped more of its Samuel Adams beer and other beverages. The company has ramped up its marketing efforts and is benefiting from increased sales, prompting the brewer to lift its outlook for the full year.
Shares spike nearly 10 percent in after-hours trading.
The company has been boosting spending on advertising and a larger sales staff. During the quarter barrel shipments rose 17 percent to 842,000.
"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," said President and CEO Martin Roper. He said the company will boost its planned spending on its sales force and other marketing for the rest of this year.
The company earned $19.7 million, or $1.45 per share, for the quarter that ended June 29. That was up from $14.4 million, or $1.06 per share, during the quarter that ended June 30, 2012.
Revenue rose 23 percent to $181.3 million, from $147.5 million a year ago, after excise taxes were paid. Regarding the launch of its Samuel Adams Boston Lager and Summer Ale in cans in May, the company said sales are "generally in line with our expectations."
Analysts polled by FactSet had been expecting a profit of $1.34 per share on revenue of $175.4 million.
Boston Beer now expects full-year earnings to range between $5.10 and $5.40 per share, compared with a previous estimate of $4.70 to $5.10. Analysts were expecting $4.90 per share, on average.
Shares had fallen $1.47 to close the regular session at $178.98 before the results were released. They jumped $17.02, or 9.5 percent, to $196 in late trading after the report. The stock hit a 52-week high of $182.99 on Tuesday.