(RTTNews) - Boston Beer Co Inc. (SAM), which makes Samuel Adams beer, raised its profit outlook for fiscal 2009, after turning around to profit in the third quarter. Earnings per share beat estimates handily. The company cited increased core shipments and improved gross margins for the upbeat results.

Net income for the quarter was $10.37 million or 72 cents per share, compared to year-ago loss of $0.3 million or 2 cents per share. Analysts were looking for earnings of 39 cents per share. In the last two quarters, the company beat estimates by an average 117%.

Net revenue rose 8% to $108.7 million from $101.1 million last year.

Core shipment volume increased 7% to about 538,000 barrels from last year. The increase was 6% excluding the impact of a product recall last year.

Gross margin increased by 10 percentage points to 54%, due to several reasons including price increases and improved brewery-operating costs. Excluding the impact of the recall and shortfall fees in 2008, gross margin increased by 6 percentage points.

However, gross margins remain significantly lower than that realized prior to 2006, due to the significant brewery operating, packaging and ingredient cost increases experienced since then, which have not been fully offset with pricing, the company noted.

The company raised its earnings per share expectations for 2009 to between $1.75 and $2.05 from prior projections of $1.40 to $1.70. Analysts foresee $1.72.

For fiscal 2010, the company believes it could support growth in excess of 10% without significant capacity expansion and has an initial capital expenditure estimate of between $15 million and $25 million. Boston Beer also expects to increase revenue per barrel by 2% next year.

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