The 10-second takeaway
For the quarter ended June 30 (Q2), Beam beat expectations on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly and GAAP earnings per share dropped significantly.
Gross margins grew, operating margins improved, and net margins dropped.
Beam recorded revenue of $595.5 million. The six analysts polled by S&P Capital IQ expected to see a top line of $581.0 million on the same basis. GAAP reported sales were 59% lower than the prior-year quarter's $1.46 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 $0.58. The 10 earnings estimates compiled by S&P Capital IQ predicted $0.54 per share. GAAP EPS of $0.63 for Q2 were 70% lower than the prior-year quarter's $2.09 per share. (The prior-year quarter included $1.44 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 58.3%, 1,580 basis points better than the prior-year quarter. Operating margin was 23.5%, 980 basis points better than the prior-year quarter. Net margin was 16.9%, 560 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $617.9 million. On the bottom line, the average EPS estimate is $0.56.
Next year's average estimate for revenue is $2.68 billion. The average EPS estimate is $2.38.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 147 members out of 152 rating the stock outperform, and five members rating it underperform. Among 57 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 55 give Beam a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Beam is outperform, with an average price target of $61.90.
- Add Beam to My Watchlist.