Boston Beer said it expects to book earnings per share in a range of $3.30 to $3.60 for fiscal 2010. That's up from its prior guidance for full-year EPS in a range of $2.85 to $3.15.
Boston Beer shares surged 12.9% to an all-time high of $96.67, before paring back somewhat to trade at $95.66 Wednesday afternoon.
The craft brewer said its upwardly revised outlook primarily reflects increased shipment volumes and the timing of certain operating costs.Year-to-date shipments and orders point to year-over-year growth of 12%, the company said. Boston Beer's updated outlook tops Wall Street's consensus call for 2010 EPS of $3.21. Morningstar raised its guidance on Boston Beer following the company's improved forecast, saying it now expects the beer maker to book $3.89 per share in fiscal 2010. "Although the rebound in demand for Sam Adams appears to be outstripping the broader economic recovery and our previous forecasts, our investment thesis remains intact that the large brewers have the ability to pressure Boston Beer's pricing power," the equity research firm noted. "We continue to believe that the market is extrapolating current growth rates over too long a period and that the stock is overvalued."