DEERFIELD, ILL.—Spirits company Beam Inc. said Thursday that its third-quarter net income rose 14.2 percent as sales of its newer alcohol brands grew.
It's the first time Beam, which makes Jim Beam bourbon, Courvoisier cognac and Sauza tequila, has reported earnings as a standalone liquor company. It spun off from Fortune Brands Inc. in October and renamed itself after its flagship brand. It also got a new ticker symbol -- BEAM.
The company said net income rose to $83.4 million, or 53 cents per share, in the quarter that ended Sept. 30. That compares with net income of $73 million, or 47 cents per share, in the same quarter last year.
Analysts surveyed by FactSet expected third-quarter earnings of 50 cents per share.
Third-quarter revenue rose 10 percent to $707.3 million from $643.1 million in 2010. Costs increased 17.6 percent to $241 million from $205 million in the same period last year.
The Deerfield, Ill.-based company said that it saw its biggest sales growth from its newer brands. Skinnygirl cocktails, a brand it acquired earlier this year, saw its year to date net sales rise 959 percent. Sales of Effen vodka, which the company acquired in 2009, rose 34 percent. Its more established brands also saw sales growth. Courvoisier sales rose 22 percent while sales of Teacher's scotch rose 16 percent.
For the full year, Beam expects to report high-single-digit growth from its 2010 earnings of $1.92 per share. Analysts are expecting earnings of $2.40 per share for the full year, according to FactSet.
Beam's stock rose 21 cents to close at $49.89 Thursday.