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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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. Motley Fool newsletter services have recommended buying shares of Beam. 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.