The 10-second takeaway
For the quarter ended March 31 (Q1), BE Aerospace beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share increased significantly.
Margins grew across the board.
BE Aerospace reported revenue of $747.3 million. The 16 analysts polled by S&P Capital IQ anticipated a top line of $703.3 million on the same basis. GAAP reported sales were 25% higher than the prior-year quarter's $600.2 million.
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 $0.67. The 15 earnings estimates compiled by S&P Capital IQ averaged $0.62 per share. GAAP EPS of $0.67 for Q1 were 37% higher than the prior-year quarter's $0.49 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 37.9%, 80 basis points better than the prior-year quarter. Operating margin was 17.4%, 70 basis points better than the prior-year quarter. Net margin was 9.2%, 80 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $732.8 million. On the bottom line, the average EPS estimate is $0.67.
Next year's average estimate for revenue is $2.98 billion. The average EPS estimate is $2.78.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 570 members out of 590 rating the stock outperform, and 20 members rating it underperform. Among 166 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 163 give BE Aerospace a green thumbs-up, and three 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 $52.82.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.