The 10-second takeaway
For the quarter ended Dec. 31 (Q4), BE Aerospace met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly, and GAAP earnings per share expanded significantly.
Gross margins improved, operating margins dropped, net margins improved.
BE Aerospace booked revenue of $654.7 million. The 18 analysts polled by S&P Capital IQ expected revenue of $656.0 million. Sales were 21% higher than the prior-year quarter's $541.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.60. The 15 earnings estimates compiled by S&P Capital IQ anticipated $0.56 per share on the same basis. GAAP EPS of $0.56 for Q4 were 81% higher than the prior-year quarter's $0.31 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 37.0%, 110 basis points better than the prior-year quarter. Operating margin was 16.7%, 10 basis points worse than the prior-year quarter. Net margin was 8.8%, 300 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $672.3 million. On the bottom line, the average EPS estimate is $0.62.
Next year's average estimate for revenue is $2.85 billion. The average EPS estimate is $2.76.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 574 members out of 595 rating the stock outperform, and 21 members rating it underperform. Among 190 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 186 give BE Aerospace a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on BE Aerospace is buy, with an average price target of $46.00.
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