Boston Beer (SAM) Surges As Consumers Trade Up to Better Beer

Shares of Boston Beer Co. (NYSE: SAM) are up 25%, and are having their best day ever, after the company reported better than expected Q4 results and provided guidance above analysts expectations.

Boston Beer reported Q4 EPS of $0.46, versus the consensus of $0.35. Revenues rose 25.7% to a record $92.2 million, versus the consensus of $88.9 million. The company sees 2008 EPS of $1.70-$2.00, versus the consensus of $1.68.

Chairman and Founder, Jim Koch, said, "We believe these results are driven by drinkers trading up to full flavored Craft Beers, the strength of our Samuel Adams brand and brand support, and increasing retailer and wholesaler support for the Craft Category and Samuel Adams."

An analysts at Wachovia said, "While craft and better beer categories are showing some of the best growth in alcohol, the extent of SAM's momentum verifies management's claims to be taking share." The firm has an Outperform rating on the stock.

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