The 10-second takeaway
For the quarter ended Sep. 30 (Q3), BCE met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share dropped.
Gross margins grew, operating margins dropped, net margins contracted.
BCE reported revenue of $5.06 billion. The 13 analysts polled by S&P Capital IQ predicted revenue of $5.02 billion on the same basis. GAAP reported sales were 7.0% higher than the prior-year quarter's $4.73 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 $0.77. The 15 earnings estimates compiled by S&P Capital IQ anticipated $0.79 per share. GAAP EPS of $0.75 for Q3 were 5.1% lower than the prior-year quarter's $0.79 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 40.5%, 70 basis points better than the prior-year quarter. Operating margin was 22.9%, 30 basis points worse than the prior-year quarter. Net margin was 12.1%, 160 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $5.21 billion. On the bottom line, the average EPS estimate is $0.68.
Next year's average estimate for revenue is $20.04 billion. The average EPS estimate is $3.22.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 236 members out of 259 rating the stock outperform, and 23 members rating it underperform. Among 75 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 69 give BCE a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on BCE is hold, with an average price target of $41.50.
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