The 10-second takeaway
For the quarter ended March 31 (Q1), Beam beat expectations on revenues and earnings per share.
Compared to the prior-year quarter, revenue shrank significantly and GAAP earnings per share dropped.
Margins increased across the board.
Beam tallied revenue of $533.8 million. The five analysts polled by S&P Capital IQ expected revenue of $508.9 million on the same basis. GAAP reported sales were 57% lower than the prior-year quarter's $1.24 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.53. The nine earnings estimates compiled by S&P Capital IQ anticipated $0.47 per share. GAAP EPS of $0.49 for Q1 were 5.8% lower than the prior-year quarter's $0.52 per share. (The prior-year quarter included $0.19 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 59.0%, 1,870 basis points better than the prior-year quarter. Operating margin was 25.0%, 1,420 basis points better than the prior-year quarter. Net margin was 14.8%, 820 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $593.9 million. On the bottom line, the average EPS estimate is $0.55.
Next year's average estimate for revenue is $2.40 billion. The average EPS estimate is $2.39.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 109 members out of 113 rating the stock outperform, and four members rating it underperform. Among 41 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 41 give Beam a green thumbs-up.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Beam is hold, with an average price target of $55.20.
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