The 10-second takeaway
For the quarter ended Dec. 31 (Q4), BCE met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew slightly and GAAP earnings per share grew significantly.
Gross margins expanded, operating margins were steady, net margins increased.
BCE booked revenue of $5.18 billion. The 12 analysts polled by S&P Capital IQ expected to see sales of $5.19 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $0.65. The 16 earnings estimates compiled by S&P Capital IQ anticipated $0.66 per share. GAAP EPS of $0.91 for Q4 were 49% higher than the prior-year quarter's $0.61 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 37.3%, 90 basis points better than the prior-year quarter. Operating margin was 20.5%, about the same as the prior-year quarter. Net margin was 14.4%, 450 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $4.95 billion. On the bottom line, the average EPS estimate is $0.82.
Next year's average estimate for revenue is $20.19 billion. The average EPS estimate is $3.20.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 238 members out of 261 rating the stock outperform, and 23 members rating it underperform. Among 74 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 68 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 $44.01.
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