Boston Beer Co. (NYSE: SAM) reported Q3 EPS of $2.78, $0.79 better than the analyst estimate of $1.99. Revenue for the quarter came in at $247 million versus the consensus estimate of $256.78 million.

2017 Outlook

The Company currently projects full year 2017 Non-GAAP earnings per diluted share of between $5.60 and $6.20. This Non-GAAP projection excludes the impact of ASU 2016-09. The Company\'s actual 2017 earnings per share could vary significantly from the current projection. The 2017 fiscal year includes 52 weeks compared to the 2016 fiscal year which included 53 weeks. Underlying the Company\'s current 2017 projection are the following 52-week full-year estimates and targets:

• Depletions and shipments percentage change of between minus 7% and minus 4% from the 53-week number in 2016.
• Price increases per barrel of between 1% and 2%.
• Gross margin of between 51% and 52%.
• Increased investments in advertising, promotional and selling expenses of between $10 million and $20 million. This does not include any changes in freight costs for the shipment of products to the Company\'s distributors. This estimate is subject to timing of brand investments currently planned for the fourth quarter of 2017 which could move into 2018.
• Non-GAAP effective tax rate of approximately 37%, excluding the impact of ASU 2016-09.
• Estimated capital spending of between $35 million and $45 million, most of which relates to continued investments in the Company\'s breweries.

2018 Outlook

The Company is completing its 2018 planning process and will provide further detailed guidance when the Company presents its full-year 2017 results. The Company is currently using the following preliminary assumptions and targets for its 2018 fiscal year:

• Depletions and shipments percentage increase of low single digits.
• National price increases of between 1% and 2%.
• Gross margin of between 52% and 53%. Increasing during the year due to progress on the cost initiatives.
• Increased investment in advertising, promotional and selling expenses of between $15 million and $25 million. This does not include any changes in freight costs for the shipment of products to the Company\'s distributors. This estimate is subject to the timing of brand investments currently planned for the fourth quarter 2017 which could move into 2018.
• Non-GAAP effective tax rate of approximately 37%, excluding the impact of ASU 2016-09.
• Estimated capital spending of between $55 million and $65 million, which could be significantly higher, if deemed necessary to meet future growth.

(Street sees FY EPS of $5.80)

For earnings history and earnings-related data on Boston Beer Co. (SAM) click here.